Cathay United Bank restructures its mainland branch into a corporate body
A Taiwan-funded bank, Cathay United Bank (China), opened in Shanghai on September 10, increasing the number of overseas-funded banks in the city to 21. The new bank is formed after corporate restructuring of the Cathay United Bank’s branch on the Chinese mainland.
Sam Lin, president of Cathay United Bank (China), said at a press conference that the newly opened bank is one of the major beneficiaries of the new round of financial reforms and opening-up campaign on the Chinese mainland. The approval process was rather speedy.
At an interview with thepaper.cn, Lin said a corporate bank is different from a bank branch, the former involves more investments in various aspects. To switch its branch to a corporate body manifests Cathay United Bank’s resolve to develop on the Chinese mainland. Also, it will become more attractive to local talents.
Cathay United Bank is a private bank that has the most branches in Taiwan. On June 11, the China Banking Regulatory Commission approved the opening of Cathay United Bank (China) Ltd, and the restructuring of its Chinese mainland branch into a corporate body, whose registration place is Shanghai and with a registered capital of 3 billion yuan (US$435.86 million). The chairman of Cathay United Bank (China) is Ming-Jian Kuo and its president is Sam Lin.
At its initial stage, the bank will mainly deal in corporate finance, financial transactions, interbank businesses, and investment banking.
Before restructuring, the Cathay United Bank’s Shanghai Branch was a corporate banking branch, whose businesses consisted of 90 percent of corporate banking businesses and 10 percent of personal banking services that limited to time deposit over 1 million yuan.
After the restructuring, the bank will be able to develop businesses such as personal financial management, consumer finance, and other personal businesses settled in RMB.
Before, the bank branch in the city found it quite difficult to recruit local professionals, for many of them regarded it as a “non-resident bank” which could leave at any time.
When asked about the bank’s business expansion, Lin said the bank will explore new opportunities on top of its old ones. In terms of investment banking, the bank will make more investments and it hopes to apply for more business licenses, especially in assets management.
Meanwhile, the bank will also strengthen its cooperation with the Chinese mainland financial banks and their financial products.
Cathay United Bank (China) will mainly develop its retail banking businesses as a starting point, and it will be supported by its associate companies such as Cathay Life Insurance, a joint venture with Shanghai Lujiazui Development (Group) Co; and Cathay Insurance Co, a joint venture with Ant Finance Services Group, with whom the bank can share their customer resources and expand new businesses based on the associate companies’ existing ones.
In addition, the restructuring of the bank will effectively improve the bank’s regulation and improve its management and service capabilities, expand new businesses in RMB, and provide more corporate customers with more quality and one-stop financial services with Taiwan characteristics.
In the future, the bank will align its major enterprise businesses with the Chinese mainland’s development goals and provide better services to small- and medium-sized companies with high risk prevention capabilities and environmentally friendly companies.
The bank will respond actively to the inclusive finance policies and assume its social responsibilities. It will also work more closely with its Hong Kong branches and provide their customers with more diversified trans-border financial services, and deepen the financial cooperation among the Chinese mainland, Taiwan, and Hong Kong.