FSC approves Land Bank's plan to open branch in central China
June 8, 2014, 12:01 am TWN
TAIPEI--The Financial Supervisory Commission (FSC) said Saturday that it has approved an application filed by state-owned Land Bank of Taiwan to open a branch in Wuhan of China's Hubei province.
The application is the third the FSC, Taiwan's top financial regulator, has approved for the Land Bank to set up a foothold in China, amid increasing business exchanges across the Taiwan Strait.
Land Bank already has a branch in Shanghai, China's financial center, and has received approval from the FSC to establish another branch in Tianjin, northern China, according to the commission.
The FSC said Land Bank is keen to extend its reach intot the inland areas of China from Shanghai and Tianjin, by setting up a branch in the inner city Wuhan to broaden its business network on the mainland.
The FSC said authorities in Wuhan offered a lot of incentives to attract Taiwanese firms to invest there, so the bank is eyeing increasing business opportunities there at a time when the number of Taiwanese investors in the mainland is growing.
The commission said Wuhan is located in the center of central China and enjoys the advantage of transportation convenience, abundant human resources and technology innovations - factors that attract foreign investors.
To better serve investors, the Wuhan authorities have granted a preferential status to foreign banks in a bid to encourage them to set up footholds in the city, the commission said.
So far, Taiwan's banks have set up 11 branches in mainland China, as well as four sub-branches and two subsidiaries.