Taiwan banks are changing direction from establishing branches to setting up more subsidiaries across the strait to conduct a wider range of business on the mainland, the Economic Daily News reported Tuesday. With the exception of Fujian, Taiwan lenders are limited to two branches in any one province so banks are seeking to set up subsidiaries to expand their scope of operations. The island’s Financial Supervisory Commission has given Bank SinoPac Co. Ltd., Fubon Financial Holding Co., and Cathay United Bank Co. Ltd. approval to set up mainland subsidiaries, while many others are preparing applications. E.Sun Commercial Bank Ltd., for example, has applied to set up a subsidiary in Shenzhen’s Qianhai special zone, the report said.
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