Regulations Governing the Banking Activity and the Establishment and the Investment by Financial Institution Between the Taiwan Area and the Mainland Area Article 5

Banks in Taiwan Area (referred to as “Taiwan banks” hereunder) that intend to establish representative offices, branches, or subsidiary banks or make equity investment in Mainland Area and financial holding companies in Taiwan Area (referred to as “Taiwan financial holding companies” hereunder) that intend to make equity investment in Mainland Area shall obtain approval from the Competent Authority in accordance with these Regulations.Where the subsidiary bank in a third area (referred to as “third-area subsidiary bank” hereunder) established by a Taiwan bank or financial holding company (referred to as “Taiwan parent company” hereunder) intends to establish a representative office, branch, or subsidiary bank or make equity investment in Mainland Area, the Taiwan parent company shall obtain approval from the Competent Authority in accordance with these Regulations.The establishment of a branch or a subsidiary bank in Mainland Area or making equity investment in Mainland Area as referred to in the preceding two paragraphs shall in addition apply to the Ministry of Economic Affairs for approval in accordance with the Act.The branches and subsidiary banks of Taiwan banks and those of third-area subsidiary banks in Mainland Area may engage in financial activities with individuals, juristic persons, organizations, other institutions or their branches in Taiwan Area and Mainland Area.