Cathay United Bank (國泰世華銀行) yesterday said it has been granted permission by the Chinese authorities to conduct yuan-based business with China-based Taiwanese firms at its Shanghai branch.
Cathay United, the lending unit of Cathay Financial Holding Co (國泰金控), said in a statement that the addtion of yuan-based businesses would allow it to better serve Taiwanese businesses in China, increase the scope of its cross-border financial services as well as expand its presence in China.
Cathay United opened its Shanghai branch in December 2010, after Land Bank of Taiwan (土地銀行), Chang Hwa Commercial Bank (彰化銀行), First Commercial Bank (第一銀行) and Taiwan Cooperative Bank (合庫銀行) became the first Taiwanese banks to obtain China’s approval to open branches there.
As of the end of last month, Cathay United’s Shanghai branch reported a pretax income of US$4.45 million, compared with the US$2.79 million for the whole of last year, with deposits totaling US$21 million and US$130 million for overall loans, acccording to the bank.
Cathay United’s announcement came after the Bank of China (中國銀行) opened its first branch in Taiwan on June 27 in Taipei and the Bank of Communications (交通銀行) launched its Taiwan branch yesterday. Taiwan gave approval last month to the two Chinese lenders providing corporate financial services in the country.