Westpac branch opens in Shanghai

Developed as part of Westpac's organic Asian growth strategy, the new Westpac branch has formal approval to conduct business in Shanghai's Pudong district. Its clients will mainly be Australian companies dealing with China. Although it is one of the largest banks in Australia its image is somewhat middle-of-the-road, non-risk-taking and bureaucratic. It will not be making waves.

Andrew Whitford, Westpac's general manager People's Republic of China, leads a staff of 15.

Jogan Rasanayakam, Westpac's general manager Asia, said, ‘We want to be known as the leading provider of export finance to Australian companies exporting to China. Working capital, letters of credit and all forms of trade finance are on offer from the branch.'

The banking licence issued by the China Banking Regulatory Commission requires that Westpac conduct foreign currency business as a starting point. Three years will have to elapse under Chinese banking regulations before Westpac can start a local currency operation.

There will be nothing very much happening until then.

In theory the Shanghai branch forms a triangular footprint for the bank in China, with a representative office in Beijing and a branch in Hong Kong.

Westpac has opted to expand in Asia through business growth rather than buying an interest in local banks.

Jogan Rasanayakam said, 'We see our business growth based in trade finance for our business banking clients, many of whom have turnovers of more than $100 million a year with China. With a branch in place, we have a great opportunity to support them.'

Perhaps the motto of the bank will be: support but do not rock the boat.

Not a bad motto for a bank feeling its way into the country. If you do not recognize the illustration this bank is not for you.