Taipei, Sept. 3, 2010 (CENS)--Six Taiwanese banks, namely, Taiwan Cooperative Bank, First Commercial Bank, Cathay United Bank, Chang Hwa Bank, Hua Nan Bank, and Land Bank of Taiwan, are actively looking for potential clients in China, without their applications to set up branches yet approved by the China Banking Regulatory Commission (CBRC).

Hoping to start running the proposed branches in China in the first half of next year, the six banks are looking for clients now. Taiwan Cooperative has a representative office in Beijing, but its first branch is to be in Suzhou, Jiangsu Province, where many Taiwanese enterprises are clustered. To attract Taiwanese enterprises as clients for its Suzhou branch, the bank’s chief executive recently flew to the city to visit the potential customers.

CBRC stipulates that Taiwanese bank branches in China can only operate non-renminbi-based businesses for the first year. So, they are limiting clients to export-oriented Taiwanese enterprises that may need non-RMB currency financial services.

First Commercial has 190 branches in Taiwan and its president recently asked each of the branch to provide at least one potential corporate client for the proposed branch in Shanghai.

A senior manger of Cathay United indicated that the operating capital needed by a Taiwanese bank branch in China is about 400 million RMB, so to break even in the first year the branch has to extend loans of no less than US$160 million and attract deposits exceeding US$130 million during the year.

(by Judy Li)