More Taiwan banks are likely to set up branches in China following the cross-Taiwan Strait economic cooperation framework agreement having come into effect yesterday, Focus Taiwan reports.

"'The sooner we can open for business in China, the earlier we can profit' has become a slogan for Taiwan's banking institutions," a banking official was quoted as having said.

A growing number of Taiwanese banks have been stepping up their offerings to Taiwan businesses based in China in a bid to boost their lending base, the news service said. First Financial Holding's chairman Tsai Ching-nain told the publication in an interview that banks should first focus on financing opportunities for small and medium Taiwanese ventures in China, then developing wealth management businesses, and then setting up branches in several markets.

Under the ECFA programme, Taiwanese banks may upgrade their services in China and offer yuan-denominated services if they have registered profits for two years. Banks that record profits in one year can offer yuan services, but only for Taiwan businesses based in China. Normally, it takes foreign banks five years before yuan services may be offered.

Some of the Taiwanese banks that already have representative branches in China are Hua Nan Bank, Taiwan Cooperative Bank, and Cathay United Bank.