Hot search: substrates  Logistics  Bond  Business  Solid  Gain  international  economic  consumer  price 
 
Home > News > Economy > Content

CBC Is Studying The Feasibility of Expanding The Scope of Financial Institutions

increase font size  reduce font Add date: 2016-11-26  Hits:88
Core prompt: Taipei,Sept.4,2012--As a further step for foreign exchange liberalization,the Central Bank of China(CBC)is studying the feasibility of expanding the scope of f

Taipei,Sept.4,2012--As a further step for foreign exchange liberalization,the Central Bank of China(CBC)is studying the feasibility of expanding the scope of financial institutions for engaging in forex business,a move which may be applicable first to securities firms,enabling them to undertake forex transactions with their peers and clients.

Once the CBC and the Financial Supervisory Commission(FSC)reached a consensus for the liberalization,forex transaction will not be the exclusive business of banks.Securities firms will become priority beneficiaries,helping them to expand foreign currency-denominated securities business.

The move is based on an instruction of Premier Sean Chen at a recent economic and financial meeting at the Executive Yuan(the Cabinet),who asked the FSC and the CBC to study the feasibility of expanding the application scope of the statute of forex management,so that securities firms and insurance firms with a certain business scale can also undertake forex business.

Korea,for instance,permits securities firms and insurance firms to take part in inter-bank forex market and other financial institutions can also undertake forex business,so long as they can meet certain conditions.

An official in charge noted that in order to avoid impacting NT-dollar management,the CBC considers limiting the liberalization to securities firms initially,mainly forex transactions between peers and with clients.However,only securities firms with certain business scales will be allowed to engage in the business and the CBC will imposed forex-business quota on such firms,according to their financial status and business demand.

The FSC is studying the feasibility of allowing securities firms to engage in offshore business,such as underwriting,brokerage,and dealership of foreign currency-denominated securities.The aforementioned liberalization will facilitate their engagement in such business.

Presently,only banks can undertake forex businesses,including foreign trade-related forex,outward and inward forex remittance,forex deposits,foreign-currency loans,and forex derivatives.

 
 
[ NewsSearch ]  [ Send Fav ]  [ Share ]  [ Print ]  [ Send Report ]  [ Close ]

 
Total0bar [View All]  Related Comments

 
Photo Recommended
Recommend News
Click Rank
 
Home | Products | Suppliers | News | Tradeshow | Sitemap | Message | RSS Feed