A Study Of Financial Cooperation Across The Taiwan Straits

As the growth of trade volume, Taiwanese businessman investment in Mainland and personnel contacts across the Taiwan Straits, further expansion of economy and trade relationships needs financial cooperation. According to the trend of world economy, both internal drive of financial development and serving trade, investment, personnel communications activities, and external pressure of financial cooperation in East Asia, financial globalization, financial liberalization, and regional financial integration, in-depth financial cooperation is essential.The paper studies history and current situation of financial cooperation across the Taiwan Straits since the 1990s, including history review, current situation analysis and outlook of banking, insurance and securities business. It emphasizes the issues of monetary settlement system and financial supervision cooperation. It analyses monetary settlement system and financial supervision cooperation modes in WTO, CEPA and Common Market through comparative analysis.The paper analyses problems and obstacles of financial cooperation across the Taiwan Straits. It shows that financial cooperation develops uniaxially and offcentred and the level should be upgraded; demand of convertibility of RMB and NT and building monetary settlement system is improving; financial supervision cooperation is urgent; the influences of political differences will exist for long time. Therefore, we should extend financial operations opening to improve financial operation volume; permit Mainland financial institutions to enter Taiwan to realize two-way and symmetrical development; build financial supervision cooperation system to promote financial cooperation level; play intermediation of Hongkong and Macao to construct financial cooperation platform for the Mainland, Taiwan, Hongkong and Macao. The paper combines Economic Zone on the West Coast of the Strait to study financial cooperation between Fujian and Taiwan. Financial cooperation between Fujian and Taiwan plays a very important role in financial cooperation across the Taiwan Straits. It should be extended and deepened.