First Bank plans to open Frankfurt branch later this year

Taipei, May 14 (CNA) First Commercial Bank, the flagship banking entity of First Financial Holding Co., is expected to open a branch in Frankfurt in the third quarter at the earliest, which would make it the first Taiwanese bank to set up a foothold in Germany.

The plan to open a branch in Frankfurt came after First Bank received the greenlight from Germany's Federal Financial Supervisory Authority (BaFin) to set up an outlet in the country's financial hub.

First Bank said the Frankfurt branch would become its 42nd overseas foothold, the most among all government-invested banks in Taiwan.

The bank's website showed that First Bank currently has outlets in the United States, Canada, China, Hong Kong, Japan, Indonesia, Cambodia, Thailand, the Philippines, Vietnam, Singapore, Laos, Myanmar, Macau, the United Kingdom, Guam, and Australia.

After the inauguration of the Frankfurt branch in the third quarter, First Bank said the outlet will cooperate with its branch in London to expand the bank's reach in Europe by building a more comprehensive financial service network.

According to First Bank, Germany is located in the center of Europe with Frankfurt being one of the continent's most important financial centers, where many well-known financial institutions such as the European Central Bank and Deutsche Bundesbank are headquartered.

After the U.K. exited the European Union, more world-class financial institutions have moved to Germany, First Bank said.

Germany has become an important destination for many Taiwanese investors, in particular from the information communication technology industry, followed by the machinery, transportation, biotech, and food industries.

The Frankfurt branch is expected to help Taiwanese investors in Germany gain easier access to the necessary financial services, First Bank said.

In the future, the Frankfurt branch will enter into the syndicated loan and foreign exchange trading businesses by taking advantage of the city's financial hub status, said the bank.