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Deal on financial issues across strait clinched

THE Chinese mainland and Taiwan yesterday clinched a cooperative financial regulatory mechanism to monitor the banking, securities, futures and insurance sectors across the Taiwan Strait.

The president of the mainland-based Association for Relations Across the Taiwan Strait, Chen Yunlin, and the chairman of the Taiwan-based Straits Exchange Foundation, Chiang Pin-kung, signed the agreement to cooperate in terms of money regulations, accessibility of financial institutions to each other's market, and an arrangement for information exchange for financial regulatory purposes.

The two parties agreed to offer aid on implementing financial and monetary regulatory responsibilities, expanding wide cooperation in financial areas and jointly safeguarding financial stability.

The two sides assured each other it would effectively supervise individual financial and monetary institutions from the opposite party.

The pact required regulatory bodies on banking, securities and futures, and insurance in the mainland and Taiwan to work out detailed arrangements for the cooperation. The two sides also agreed to encourage commercial banks from both sides to start business in money swaps, supply as well as cooperation in cash anti-counterfeiting technology. Arrangements for cross-strait monetary clearing would also be drafted.

The two bodies also ensured that the respective financial regulators would provide each other financial and monetary regulatory information and pivotal decisions that regulators deem might have consequences on the other's financial market.

The agreement, however, emphasized that the exchange of financial information would only be used for financial or monetary regulatory purposes in a mutually-assured confidential way.

The two sides agreed that financial and monetary cooperation could also be realized by personnel exchange, professional training, technological partnership and information exchange.


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