A Taiwanese bank has reported that improved trade flows between mainland China and Taiwan have significantly boosted its letter of credit (L/C) business.

First Commercial Bank (FCB), which already has a physical presence on the Chinese mainland, also plans to expand its operations there.

Deal flow

The Taiwanese bank says that increased trade flows across the Taiwan Strait have boosted its L/C business so that 20 per cent of the credits it writes are now for trades with mainland China.

The improvement is a result of the bank's efforts to secure a firm foothold in China.

Chinese footprint

FCB has already opened a branch in Shanghai and a leasing company in Suzhou in Jiangsu Province.

The bank now says it is preparing to open another branch and a leasing company in Chengdu, in Sichuan Province.

Mainland partner

The bank also signed in October a memorandum of understanding with China Construction Bank on mainland China to facilitate comprehensive business co-operation.

FCB is a subsidiary of Taipei-based First Financial Holding.

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