E. Sun will become the first Taiwan bank to have branches in Dongguan to deal with the RMB business.
E. Sun Bank, a Taiwan-based bank, is to upgrade its representative office to a bank branch in Dongguan, Dongguan's banking authority confirmed on December 29.
Mr. Chen Qingyuan, the director of China Banking Regulatory Commission (CBRC) Dongguan Branch said E. Sun Bank's application to set up branches in Dongguan have been approved by CBRC.
The approval will make E. Sun the first Taiwan bank to have branches in Dongguan to deal with the RMB business, Mr. Chen said.
The permission would allow them to tap into the mass Chinese market and they would aim first to serve Taiwanese firms based there.
E. Sun Bank has for long eyed the market potential of financial industry in Dongguan, the home to the largest businessman on the mainland. The bank set up a representative office in Dongguan on April 28, 2010.
According to the ECFA which took effects since this January, Taiwanese banks can upgrade rep offices to branches a year after being opened, rather than two years under the old regulations. They can also do business in RMB after operating a branch for two years, including one profitable year -- previously it took three years, with two profitable years.