25 September 2018

Taiwan plans annual checks on banks’ China exposure, paper says

Taiwan’s Financial Supervisory Commission has decided to include banks’ business exposure in the mainland as a major item for its annual financial check this year for the first time, Economic Daily News reported Wednesday, citing an unidentified official with the regulator. The move comes amid concerns that such exposure has been at a high level, the report said, also noting the shadow banking risks in the mainland. According to current rules, Taiwanese banks can have business exposure in the mainland, including loans and investment, only up to 100 percent of their net asset values. At present, Taiwan banks together have a total of 11 branches in the mainland, up from five at the end of September, the report noted.

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