Regulations Governing the Banking Activity and the Establishment and the Investment by Financial Institution Between the Taiwan Area and the Mainland Area Article 62

A Mainland commercial bank or Mainland-funded bank that meets the following requirements may apply to the Competent Authority for approval to establish a branch in Taiwan Area:1. The bank is in compliance with the law, soundly managed and has not committed any major regulatory violation within five (5) years prior to application;2. The bank is ranked, in terms of capital or assets, among the top two hundred banks in the world within one year prior to application;3. The bank has established a representative office in Taiwan Area for at least two years and is free of any violation record. However if the economic cooperation agreement between Taiwan Area and Mainland Area provides otherwise, such agreement shall prevail;4. The bank engages in international banking business with a sound financial structure and its financial ratios comply with the standards prescribed by the competent authority;5. The appointed branch manager has sufficient experience in international finance and the management of international banking operations, and meets the qualification requirements set forth in the Regulations Governing Qualification Requirements for Responsible Persons of Banks in Taiwan Area;6. The bank has established a branch and operated business in a member country of OECD for five years or longer; and7. No other facts indicate that the sound business operations of the bank may be hindered.