November 17, 2009

Taiwan signed three long-anticipated financial memoranda of understanding with China Monday, paving the way for closer cooperation in banking, insurance and securities, Taiwanese authorities said.The agreements, the latest sign of improving ties between the former arch rivals, follow long standing pressure from the island's finance industry to gain greater access to the huge mainland market.

"Our finance industry needs to go to the mainland. It can also serve Taiwan businesses there," Taiwan's Financial Supervisory Commission said on its website."As the domestic financial industry goes to the mainland, it has an advantage because of common language and cultural similarity, so it has great potential for profitable development in the mainland market."The memorandums cover information exchange, confidentiality, financial inspection, crisis management and continued contact between the two sides' regulatory agencies, the commission said.