After 6-Year Hiatus, Taiwan's FSC Plans On-Site Inspections in China This Year

(Central News Agency, Reporter Su Sih-yun, Taipei, 4th) The FSC has not conducted on-site inspections in China for six years since 2020, due to factors including the pandemic, budget constraints, and China's consent. The FSC announced that this year's financial examination plan includes inspections in China. The Legislative Yuan is currently reviewing the relevant budget. If the budget is approved, the FSC will report to the Mainland Affairs Council for approval and then seek China's consent to proceed.

FSC Examination Bureau Deputy Director-General Kuo Wen-lung explained at a regular press conference today that this year's inspection plan includes the branches of domestic banks in mainland China and Hong Kong. Once the budget for inspection travel expenses is confirmed, they will immediately notify the Mainland Affairs Council for approval. Subsequently, in accordance with the Memorandum of Understanding on Cross-Strait Banking Supervision and Cooperation, they will notify the National Financial Regulatory Administration of China and obtain its consent to conduct the inspections.

Kuo explained that the MOU, signed between Taiwan and China on November 16, 2009, includes inspection methods and procedures for notifying China of the inspection plan's purpose and scope.

FSC data shows that the last on-site inspection in China was in 2019, covering four branches. However, due to the pandemic, budget issues, or lack of permission from China, no inspections were conducted in China from 2020 to 2025, although inspections in Hong Kong did take place.

When asked by the media about the possibility of inspections in China this year, Kuo noted that last year's inspections were canceled due to significant budget cuts. He added that, besides the budget, China's consent is also a determining factor.

Kuo further explained that banks have overseas branches and subsidiaries worldwide. Inspection decisions are primarily based on economic conditions, risk assessments, and budget planning. Domestic banks have established numerous branches in China, but inspections were suspended for several years due to the pandemic. While risks can be monitored through head office audits, third-party checks, and off-site surveillance mechanisms, actual on-site inspections provide a more complete understanding of the situation. Therefore, if the budget is allocated, planning inspections in China is crucial for cross-strait banking supervision.

According to FSC statistics, overseas inspection regions over the past three years include the United States, Hong Kong, Australia, the Philippines, Cambodia, Singapore, and Vietnam. The US had the most inspected branches with nine, followed by Hong Kong with six. (Editor: Yang Kai-hsiang) 1150604