Land Bank mulling setting up more footholds in China

Wang Yao-shing, chairperson of the Land Bank of Taiwan, told legislators at a legislative meeting that the bank currently has a representative office in Shanghai.

“In the future, the bank is planning to set up footholds in Tianjin, Haixi economic zone (HEZ) and in Qingdao,” Wang said.

The economic zone on the west coast of the Taiwan Strait comprises the whole of Fujian province and 14 neighboring cities in Zhejiang, Jiangxi and Guangdong.

Wang also said that the bank hopes to upgrade its office in Shanghai into a branch to undertake businesses.

He also talked about the plan for the Shanghai office in the next three years.

“We estimate it will still be in red in the first year, make some profit in the second year, and then make money and undertake yuan (Chinese currency) business in the third year,” he said.

Wang was fielding questions at the Finance Committee of the Legislative Yuan in which Legislator Alex Fai of the ruling Kuomintang asked if the bank is mulling whether to expand operations in China after the signing of the MOU.

Fai noted that the bank has total assets of NT$2.03 trillion, but has a paid-in capital of only NT$25 billion, which he said will have a big effect on any efforts to develop in China.

Finance Minister Lee Sush-der, who was also at the meeting, said the bank will incrementally employ its capital to facilitate its development in China.

He said the capital increment proposal has been submitted to the Executive Yuan for review.

Under the MOU, which was signed Monday and will take effect within 60 days, Taiwan and China agreed to allow greater access to each other's financial markets.

They will permit the establishment of bank branches in each other's territory and, under further agreement, could allow investments in each other's banks.

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