CTBC Financial Holding Co (中信金控) has signed memorandums of understanding (MOU) on business cooperation with two Japanese banks, a move that showed the firm’s determination to penetrate the market in Japan.
In a statement released on Friday, CTBC Financial said it inked agreements with two regional banks in Shikoku: the Iyo Bank and 114Bank.
Earlier last week, CTBC Financial signed a similar agreement with Miyazaki Bank. These agreements followed an accord signed with Shizuoka Bank in June, an MOU with Singinko Tokyo in August and an agreement with the Bank of Kyoto last month.
Under the MOU with Iyo Bank and 114Bank, CTBC Bank (中信銀行) — the flagship banking entity of CTBC Financial — will exchange business information with its new Japanese partners.
CTBC Financial said CTBC Bank has targeted corporate clients in Japan, because it expects the links will provide Japanese companies with an alternative source of funding, the company said.
CTBC Financial said that after Taipei and Beijing signed the Economic Cooperation Framework Agreement (ECFA) in 2010, Taiwan has become a springboard for foreign investors, including Japanese companies, which have an eye on the huge Chinese market.
The financial holding company said that since the Japanese partners are major regional banks, the partnership with them is expected to help CTBC Financial extend its reach there.
According to CTBC Financial, Iyo Bank, headquartered in Ehime, is capitalized at ￥20.9 billion (US$213 million) and sits on more than ￥6 trillion in total assets. The bank currently has 151 outlets in Japan.
114Bank, headquartered in Kagawa and capitalized at ￥37.3 billion, has 123 outlets in Japan. The bank also has representative offices in Shanghai and Singapore, as well as business ties in China, Thailand, Philippines, Indonesia and India.