Investment Commission Approves Overseas Investments of Three Domestic Banks

The Investment Commission under the Ministry of Economic Affairs (MOEA) recently approved applications from three domestic banks--CTBC Bank, Cathay United Bank, and First Bank--to invest an estimated total of US$720 million (about NT$21.857 billion) overseas.

Among the three banks, CTBC Bank reportedly plans to remit 52.97 billion Japanese yen (about NT$15.74 billion or US$524.67 million) to purchase a 100% stake in Tokyo Star Bank. Cathay United Bank reportedly wants to spend US$33.92 million on a 70% stake in the Singapore Banking Corporation (SBC) of Cambodia, which has about 16 outlets there. Finally, First Bank wants to spend one billion renminbi (RMB), or about NT$5 billion (US$166.67 million), to set up a branch in Xiamen, Fujian Province.

An Investment Commission official comments that the planned overseas investments by the three banks will not only expand their operations in Asia, but will also reinforce their progress toward internationalization. (JL)