Bank SinoPac, a wholly-owned subsidiary of Taiwan's SinoPac Financial Holdings, has received approval from its local regulator to set up a branch in Nanjing, China.

This is the first time the FSC has approved the establishment of a subsidiary bank in mainland China by a domestic bank. If approved by the mainland's regulator, Bank SinoPac will be the first Taiwanese-invested subsidiary bank in China.

This move means that other Taiwan-based firms like Chinatrust Bank and the Industrial Bank of Taiwan may apply for the creation of subsidiary arms in China soon. 

To take charge of setting up the mainland unit, the company hired Chung Chao-min to be its vice president. Chung was previously a vice president at ChinaTrust Bank.

Following the FSC's approval, Bank SinoPac will now apply with the Investment Commission of the Ministry of Economic Affairs before submitting its application to the China Banking Regulatory Commission. 

The Nanjing branch will have a capital of RMB2 billion (US$317 million), beyond the RMB1 billion set by China, to prepare for future expansion plans in the region.