Union Bank of Taiwan, the Taiwanese commercial bank that offers wealth management and trust services, has upgraded its operating license in Hong Kong to full branch status.

The bank has had a representative office in the territory since 1999. The recent approval from the Financial Supervisory Commission now allows the company to provide a wider range of services to Taiwanese investors with business linkages in China. In a statement, the bank said it will now seek the Hong Kong Monetary Authority's approval for the upgrade in a bid to bolster its global visibility. 

Under its new license, the bank must remit NT$446 million ($15 million) as initial working capital to the Hong Kong branch, which will be used to loan Taiwanese investors or join syndicated loan activities. The bank also said it is considering applying for a license to offer RMB-denominated deposit and lending businesses in the future.

Union Bank of Taiwan has a network of 87 outlets at its home country and operates a representative office in Hanoi, Vietnam. The bank said it has no plan to expand beyond Hong Kong and Vietnam in the short term.