Taiwanese banks inks pact with China’s AgBank

Cathay United Bank, Mega International Commercial Bank, and Mega Financial Holding Co. forge cooperation in corporate lending, bancassurance, retail banking and personnel training with AgBank.

Three major Taiwanese banks on Monday signed a cooperation agreement with a Chinese state-controlled peer in the hope of taking advantage of its numerous branches to expedite expansion across the Taiwan Strait.

Cathay United Bank, Mega International Commercial Bank, the banking units of Cathay Financial Holdings Co and Mega Financial Holding Co respectively, as well as Taiwan Cooperative Bank, signed separate memorandums of understanding (MOU) with Agricultural Bank of China (AgBank, in Taipei to pave the way for cooperation in corporate lending, bancassurance, retail banking and personnel training.

AgBank chairman Xiang Junbo inked the agreements personally with his counterparts of the three Taiwanese lenders at each bank’s respective headquarters.

Cathay Bank expects the pact to facilitate its expansion in China because AgBank provides corporate and consumer banking, underwriting and other services through a massive network at 23,500 outlets throughout China, the lender said in a statement.

Mega Bank, which is waiting for approval from China to establish a branch in Suzhou, Jiangsu Province, expressed in a statement that the memorandum would help speed up its development in the market.

Taiwan Cooperative Bank, which has the largest number of branches throughout Taiwan, expects the agreement to serve as a foundation on which the two lenders can join hands and strengthen bilateral ties in the Greater China area.

View the full story in Taipei Times.