Bank of Taiwan, the island's largest bank, has launched its first branch in Shanghai as part of efforts to expand in Mainland China.

In its initial year, the branch will offer foreign currency services for Taiwanese businesses with operations in the city. It will also be offering RMB-related services by 2013, pending regulatory approvals.

In a statement during the opening ceremony, Susan Chang, chairwoman of Bank of Taiwan, described the new office as a "beachhead" which will open up opportunities into other Chinese cities. Shanghai is the Mainland's financial hub. Cities being considered for the bank's next branches include Chongqing, Chengdu and those in the Pearl River Yangtze River deltas and the Bohai Economic Rim.

The Shanghai branch may be converted into a subsidiary in the future, Chang added, to allow it to offer a wider range of businesses. 

The branch has been functioning as a representative office for the past three years. Its branch status was achieved following the recent cross-strait Economic Cooperation Framework Agreement signed between Taiwan and China, which eases financial cooperation between the two territories.