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As of March 2019, Taiwan has a Central Bank, 37 domestic banks (with 3,397 branch offices), and 29 local branches of foreign. In addition, there are 23 credit cooperatives, 283 agricultural credit unions, and 28 fishermen’s credit unions. These banks, cooperatives, and credit unions have traditionally played a dominant role in finance in Taiwan.

The Central Bank performs all of the functions normally associated with central banks in other markets. It issues currency, manages foreign exchange reserves, handles treasury receipts and disbursements, sets interest rate policy, oversees the operations of local financial institutions, and serves as a lender of last resort.

Taiwan’s domestic banks offer a wide range of services, including accepting deposits, making loans, handling trade finance and providing guarantees, and discounting bills and notes. Most are also involved in the securities business, underwriting and trading securities and managing bond and debenture issues, as well as providing savings account facilities. The Mega International Commercial Bank assists with long-term industrial and project financing, while the Export-Import Bank of the Republic of China and the Farmers Bank focus on trade finance and agricultural development, respectively.

Foreign banking institutions play an important role in Taiwan’s financial sector, and thus generally enjoy treatment akin to that of domestic commercial banks. Foreign banking institutions are permitted to engage in trade finance, foreign exchange, private and corporate lending, and various kinds of trust businesses. In order to enhance their overall market presence, many foreign banking institutions have developed attractive consumer loan and credit card service offerings

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