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Taiwan:
They Were Doing So Well
Snapshot: 48 banks in the 500 (1999: 46) Assets: $578.3b.
($537.9b.) Profits: $2.1b. ($3.3b.)
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Taiwan
banks were never burdened with the magnitude of bad loans faced by
counterparts in South Korea or Southeast Asia. That was then. Now,
NPLs from "old economy" sectors are rising. Last year, Moody's Investor
Services rated no Taiwan banks as low as D or E in terms of financial
soundness. This year five brought home such poor marks. The basic
problem: Too many banks chasing too few good customers.
RESTRUCTURING Taipei wants some larger state-owned banks to
merge, but it would take ultra-sensitive time-lapse photography to
catch hints of consolidation. That could change within the next 12
months.
LENDING Loan growth remains lower than earlier forecasts despite
robust economic growth. For some, capital markets are a better bet.
REGULATION Foreign banks are still not allowed to buy local
banks and their branch networks are restricted. But ambitions to make
the island a financial center could encourage looser laws.
Performance
Topnotchers: 10 Best Performing Banks
| |
Institution |
HQ |
Assets
$
Mill |
Profits
$
Mill |
Profit
as
% of |
500
Rank
|
| Assets |
Equity |
|
1
|
BANK
OF TAIWAN |
Taipei |
64,198
|
231.4 |
0.4% |
4.0% |
31 |
|
2
|
TAIWAN
COOPERATIVE BANK |
Taipei |
48,107 |
152.0 |
0.3% |
9.4% |
47 |
|
3
|
LAND
BANK OF TAIWAN |
Taipei |
43,406 |
232.1 |
0.5% |
10.1% |
50 |
|
4
|
FIRST
COMMERCIAL BANK |
Taipei |
36,492 |
189.6 |
0.5% |
7.4% |
61 |
|
5
|
HUA
NAN COMMERCIAL BANK |
Taipei |
34,156 |
164.6 |
0.5% |
7.0% |
65 |
|
6
|
CHANG
HWA COMMERCIAL BANK |
Taipei |
33,126 |
130.3 |
0.4% |
6.1% |
67 |
|
7
|
TAIWAN
BUSINESS BANK |
Taipei |
26,109 |
116.4 |
0.4% |
7.3% |
86 |
|
8
|
INTL.
COML. BANK OF CHINA |
Taipei |
22,170 |
149.4 |
0.7% |
8.4% |
98 |
|
9
|
CHINATRUST
COMMERCIAL BANK |
Taipei |
19,856 |
150.5 |
0.8% |
9.3% |
108 |
|
10
|
UNTD.
WORLD CHINESE COML. BANK |
Taipei |
19,183
|
197.3 |
1.0% |
10.5% |
114 |
Write
to Asiaweek at mail@web.asiaweek.com
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Rating
show the number of banks in each category; "E" is the lowest
grade for financial soundness.
Souce: Moody's Investors Service
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