Taiwanese Banks Expanding into Southeast Asia and Australia

Taipei, Oct. 3, 2012 (CENS)--Encouraged by the Financial Supervisory Commission (FSC), Taiwanese banks have been expanding into Southeast Asia and Australia.

Early last week the FSC approved applications from Cathay United Bank and E. Sun Bank, with the former to establish representative office in Jakarta and the latter a branch in Sydney, where branches have been set up by Mega International Commercial Bank, Taiwan Business Bank, First Commercial Bank, Taiwan cooperative Bank, and Hun Nan Bank.

S. C. Chiu, deputy director general of the Banking Bureau of FSC, says Australia is one of the most active economies in the southern hemisphere, attractive to Taiwanese enterprises for steady economic growth, stable politics, and sound financial laws and regulations.

The FSC has approved this year 12 applications from domestic banks for setting up footholds in Southeast Asia and/or Australia, with statistics showing Taiwanese banks having posted combined pretax profits of NT$2.8 billion (US$93.33 million) from operations in Southeast Asia and Australia in the first half.

FSC officials encourage local banks to set up footholds in SE Asia for Taiwanese enterprises in China have been relocating to SE Asia due to rising manufacturing costs.

Last month E. Sun opened a branch in Singapore to become the ninth Taiwanese bank there and has been approved to set up rep. office in Yangon, Myanmar and branch in Cambodia.

Hua Nan and Chang Hwa Bank both target setting up footholds in Cambodia, with Hua Nan and Mega being interested in tapping the Vietnamese market, and First planning to acquire local banks in Indonesia and Thailand.

Yuanta Bank is slated to open three branches next year in Singapore, Macau and Hong Kong.