Taipei, July 11 (CNA) Bank of Communications, one of China's leading lenders, will open a branch in Taipei July 16, making itself the second Chinese bank to set up a Taiwan branch after Bank of China.
Bank of Communications, which set up a representative office in Taipei in September 2010, obtained the green light in early June from the Financial Supervisory Commission (FSC), Taiwan's top financial regulator, to upgrade its representative office into a branch.
According to the FSC, the branches set up by Bank of Communications and Bank of China are allowed to conduct a wide range of businesses, including deposit taking, loan extending, issuance of letters of credit, and investments in government, corporate and financial bonds, as well as commercial bills.
Bank of Communications said its Taipei branch will focus on corporate banking in an initial stage to serve Taiwanese investors operating in China and Chinese enterprises operating in Taiwan.
The bank said it will take deposits amounting to no less than NT$3 million (US$100,334) from each of its retail clients after the branch is inaugurated.
The bank added it has begun testing its computer system installed in the Taipei branch in a bid to ensure it can engage in inter-bank lending and foreign exchange businesses.
On June 22, Bank of China opened its Taipei branch by upgrading its representative office which was also set up in September 2010.
In addition to Bank of China and Bank of Communications, China Construction Bank and China Merchants Bank operate their own representative offices in Taiwan.
So far, a total of nine Taiwanese banks have opened branches in China. They are First Commercial Bank, Cathay United Bank, Chang Hwa Commercial Bank, Land Bank of Taiwan, Taiwan Cooperative Bank, Hua Nan Commercial Bank, Chinatrust Commercial Bank, Mega International Commercial Bank, and Bank of Taiwan, according to the FSC.
(By Kao Chao-fen and Frances Huang)