Taiwan FSC Has Not Inspected Banks in China for Seven Years as Chen Chung Urges Cross-Border Oversight

Taiwanese banks operate branches and subsidiaries in mainland China, but their home regulator, the Financial Supervisory Commission, remains legally responsible for cross-border supervision. On-site inspections can assess lending, anti-money-laundering controls and risk management. Former Premier Chen Chung said cross-strait tensions and budget constraints had created a prolonged supervisory gap affecting Taiwanese banks' overseas asset quality and financial stability.

The FSC has not inspected Taiwanese banks' operations in mainland China for seven consecutive years. It recently said it had allocated funding in its 2026 budget for inspections in China and was seeking to resume on-site reviews. Public information does not disclose the budget amount or a firm departure date. Chen urged the government to capitalize on opportunities for cross-strait engagement, promptly coordinate inspection arrangements and close the gap in cross-border oversight.