The Bank of Taiwan, which is planning to establish a unit in Lithuania, could successfully compete with the country’s major banks, a central bank official said on Wednesday.
“We [...] encourage the Bank of Taiwan to provide as diverse services as possible in Lithuania,” Lukas Jakubonis, chief business development officer at the Bank of Lithuania, told BNS in a comment.
“Lithuania offers an excellent opportunity to provide financial services to both individuals and organisations. We have hope that the Bank of Taiwan can successfully compete with major banks in our country,” he said.
According to Jakubonis, the Bank of Lithuania has been in direct contact with the Bank of Taiwan and is aware that it has received approval from its supervisory authority to establish a bank in Lithuania.
The central bank is now waiting for an official notification from the Taiwanese authority, which will provide more clarity on the bank’s plans, the official said.
“To our knowledge, the Bank of Taiwan is currently analysing our market and considering the best way to enter Europe through Lithuania. On the one hand, trade between Lithuania and Taiwan is growing, and so is the need for financing, which could be met by both local and Taiwanese banks,” he said.
The state-owned Bank of Taiwan is the island’s largest bank with “a solid track record, reputation and strong financial backing”, according to the official.
“Taiwan has allocated impressive amounts for investment in the Eastern European region, so the issue of financing will naturally arise in the future. This aspect reduces the costs for the Bank of Taiwan to enter the European market,” he added.
Finance Minister Gintarė Skaistė said on Wednesday that the Bank of Taiwan is likely to focus on business clients in Lithuania, but the specific nature of its operations will become clearer once it receives a license from the Lithuanian central bank.
A Lithuanian delegation visited Taiwan in late 2023 and invited the bank to establish its presence and provide services in Lithuania, according to the minister.
Further reading
The Verslo Žinios business website has reported recently that the Bank of Taiwan wants to set up a representative office in Lithuania as a springboard to Central and Eastern Europe.
The Financial Supervisory Commission of Taiwan has approved the bank’s application for permission to establish operations in Lithuania, according to the website.
The Bank of Taiwan currently has 11 representative offices, including in the US, Hong Kong, Japan, Singapore, the UK, South Africa, and Australia.
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