"The Bank of Taiwan will seek to set up a branch or an affiliate as soon as possible in Shanghai, if the planned Taiwan-China economic cooperation framework agreement (ECFA) permits Taiwan-based banks to directly establish branches in China without having first to open offices in China," Chang told CNA.

"The Bank of Taiwan has since 2003 applied to the Chinese authorities to open an office in Shanghai, but the request has not been approved to date, " she noted, calling on "the two sides of the Taiwan Strait to swiftly give the green light to the issue based on a just-clinched memorandum of understanding (MOU) on financial supervisory cooperation." Taiwan announced a day earlier the inking of the MOU, which will become effective within 60 days and which is expected to be further discussed in future rounds of negotiations on the projected ECFA.

She admitted that it is not easy for Taiwanese banks to explore the vast Chinese market, but said that "a broader market opening will definitely bring about more development opportunities for Taiwan-based banks." The Bank of Taiwan has a capital adequacy ratio of 11 percent, well above the international requirement of 8 percent, making the bank fully capable of opening a branch in China in terms of capital requirement, she pointed out.

Apart from Shanghai, she went on, the bank is also mulling the possibility of establishing a second stronghold in another Chinese city -- probably in Shenzhen or Suzhou or in a proposed Western Taiwan Strait Economic Region in Fujian Province -- initially to expand its credit loan services to Taiwanese businessmen there and eventually to serve Chinese enterprises and private individuals.

Chang voiced hope that the state-run bank will catch up with other banks in setting up strongholds in China and said she is confident that it will be able to provide reliable and trustworthy services to both Chinese and Taiwanese people.

(By Mandy Wang and Flor Wang)