Taipei Fubon Bank has received approval from Japan’s Financial Services Agency (FSA) to establish a branch in Tokyo, marking the Taiwanese lender’s first foray into the Japanese market. The move comes as Taiwanese companies, particularly those in the semiconductor industry, increase investment in Japan.
The Financial Supervisory Commission (FSC) in Taiwan initially approved Taipei Fubon Commercial Bank’s application to seek approval from Japanese financial authorities in July 2024, citing the growth prospects of the Japanese market and the bank’s need to expand its overseas network. The FSA’s subsequent approval, confirmed today, allows the bank to proceed with establishing a physical presence in Tokyo.
Taipei Fubon Bank indicated its decision to expand into Japan was driven by the increasing bilateral trade between Taiwan and Japan, and the growing number of Taiwanese businesses investing in the country. The establishment of a new factory by Taiwan Semiconductor Manufacturing Company (TSMC) in Kumamoto, Japan, has been a significant catalyst, attracting numerous companies in its supply chain to also consider operations in Japan.
According to the FSC, eight Taiwanese banks already operate in Japan, including the Bank of Taiwan, First Commercial Bank, Chang Hwa Commercial Bank, Mega International Commercial Bank, Taiwan Business Bank, E.SUN Commercial Bank, Taishin International Commercial Bank, and CTBC Bank. Taiwan Cooperative Bank also received approval to establish a branch in Japan earlier this year.
As of the end of December 2023, Taipei Fubon Commercial Bank had eight overseas units in Vietnam, Hong Kong, mainland China, Singapore, Indonesia, and Australia, comprising one subsidiary, five branches, and two representative offices. The Tokyo branch represents a further step in the bank’s strategy to build a comprehensive overseas financial service network.
Taipei Fubon Bank aims to connect its domestic and international service locations, offering financial services to both Taiwanese and Japanese enterprises. The bank anticipates considerable potential for investment in Japan, given the integration of capital, technology, and market capabilities between the two nations.