AFX News Limited Taiwan FSC mulls easing rules on bank loans for China ops via OBUs

TAIPEI (XFN-ASIA) - The Financial Supervisory Commission (FSC) is considering allowing banks’ offshore business units (OBUs) to provide more unsecured loans for Taiwan companies’ mainland China operations, the Economic Daily News reported, without identifying sources It said the agency is mulling raising the limit for such loans to 15 pct of the combined net assets of OBUs and related overseas entities, from the current 10 pct.

The central bank is supporting the proposal, the paper said, adding that the FSC is now seeking endorsement from Taiwan’s Mainland Affairs Council and other government agencies. The Mainland Affairs Council charts Taiwan’s policy towards China. adela.lin@afxasia.com xfnal/xfnrc COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved.

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