Cathay United Bank will become the first Taiwanese lender to set up a branch office in the Shanghai Free Trade Zone. The bank obtained approval from Taiwan’s Financial Supervisory Commission (FSC) in January this year. The branch will open on Friday.
The FSC said that the presence of a branch office in the Shanghai Free Trade Zone is critical for Taiwanese banks in terms of pushing ahead with cross-border investments, overseas financing and remittances in China.
The financial regulator also said that having offices in Shanghai is a prerequisite condition for Taiwanese lenders to set up a foothold in the Shanghai Free Trade Zone.
Three other Taiwanese banks have also received approval from the FSC to extend their turf into the new financial hub in Shanghai.