Taiwan

Taiwanese banks’ net interest margins are unlikely to improve in the next 2 years, says Standard & Poor's.

It’s another advance for cross-strait banking.

Two of China’s top five banks are to establish branches on Taiwan, becoming the first Mainland lenders to bank on the island.

But the question is, who will be the first to do so?

Cathay Financial has bought a 3.45 percent stake in Taishin Financial for T$4.7 billion or $155 million from private equity fund Newbridge Capital.

Banking ties with China may boost Taiwan's banks this year amid an overcrowded home market and a global economic environment that could reduce their profits.

The Taiwanese lender is keen on the move after signing cooperation pacts with Mainland banks.

Part of the MOU is to further efforts to carry out personnel training to further boost business exchanges between lenders.

All existing employees of MetLife Taiwan will be retained and CFHC will maintain employee's salary and welfare policies for the next two years.

The Taiwanese lender has already opened a branch in Shanghai and a financial leasing company in Suzhou.

Financial Supervisory Commission of Taiwan granted approval of operations.

The move to prepare Taiwan lenders to weather possible economic downturn due to US and Europe crises.

The bank’s earnings are expected to remain robust until 2012, underpinned by a gradual widening of net interest margins.

The Taiwanese bank to work with what it considers the most internationalized bank on the Mainland.

Chinese lenders’ focus on corporate banking poses a threat to its Taiwanese counterparts in competing for patronage from Taiwanese enterprises.

Taiwan's  Mega International Commercial Bank opened its first branch in Cambodia to attract more Taiwanese investors in the kingdom.