Taiwanese Banks Inclined to Set up Subsidiaries in China Amid Widening Market

With further opening of the financial market in China, Taiwanese banks, including Bank SinoPac, Taipei Fubon Commercial Bank, Cathay United Bank, E. Sun Bank, Hua Nan Bank, CTBC Bank, Mega International Commercial Bank, and Bank of Taiwan (BOT), are more inclined to set up subsidiaries there.

Bank SinoPac and Taipei Fubon have already unveiled subsidiaries in China, and Cathay has recently been approved by Financial Supervisory Commission (FSC) to establish a subsidiary in Shanghai, so has E. Sun.

Mega, BOT and Hua Nan may follow suit soon as they are studying the feasibility of running subsidiaries in China. Mega is considering to establish a subsidiary in Shanghai, and so has decided to relocate its second branch to Ningbo, Zhejiang Province from Shanghai.

BOT also plans to operate a subsidiary in China as part of its efforts to further develop the consumer and corporate banking markets there, driven by China's banking laws to allow subsidiaries wider scope of business than for branches.

Hua Nan is expected to set up a subsidiary in China before the end of 2015 when its third branch is slated to open for business. First Bank may set up a subsidiary in China without confirming a timetable as yet, with plans to also to establish 12 outlets in villages and towns of Henan Province. (JL)