Regulations Governing the Banking Activity and the Establishment and the Investment by Financial Institution Between the Taiwan Area and the Mainland Area Article 20

A Taiwan bank that meets the following requirements may apply to the Competent Authority for approval to establish a representative office in Mainland Area:1. The bank is in compliance with the law, is soundly managed and has not been subject to any disciplinary action, or has been subject to disciplinary action but specific remedial actions have been taken therefor and accepted by the Competent Authority within three (3) years prior to application;2. The bank’s ratio of equity capital to risk-weighted assets was 10% or higher during the latest fiscal half year;3. The bank has international financial knowledge and experience; and4. The bank has established a branch and operated business in a member country of The Organization For Economic Cooperation And Development (OECD) for two years or longer.If a third-area subsidiary bank meets the requirements set out in subparagraphs 1 to 3 of the preceding paragraph, its Taiwan parent company may apply to the Competent Authority for approval for said third-area subsidiary bank to establish a representative office in Mainland Area.