Article: Dealing with big brother: two issues stand out when assessing the outlook for Taiwan's banks -- the desirability of cross-strait co-operation and the need for domestic mergers. (Asia: Taiwan).(Chinatrust commercial bank)(Brief Article)

Jeffrey Koo, chairman of Taiwan's largest international bank, Chinatrust Commercial Bank, believes that mainland China desperately needs Taiwan's banking services to bolster its expanding economy and export industry.

Speaking to The Banker, Mr Koo said the 50,000-60,000 Taiwanese factories on the mainland cannot get proper banking services because local banks there are not familiar enough with them.

"If mainland China allowed Taiwanese banks to operate and go into joint ventures that would help the factories get proper lines of credit and trade finance which would lead to expanded production, increased exports and increased growth in China's economy."

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