Sat, Dec 23, 2000 - Page 17 News List

Bankers' group prepares AMC

By Stanley Chou  /  STAFF REPORTER

With as many as 35 domestic banks on board, the Bankers' Association (銀行公會) is likely to be the first organization to set up an asset management company in Taiwan.

The government has recently permitted asset management companies to try and mop up over NT$1 trillion in bad debt held by domestic banking institutions.

"The first meeting by the Bankers' Association regarding the new asset management company will be held next week," said Lee Yon-san (李庸三), chairman of Bankers' Association. "The founders' meeting will be held early next year."

According to Lee, as many as 35 domestic banks have decided to participate in the first asset management company, with 15 banks undecided and nine banks declining to join.

"Since many members of the association provide funds to set up the company, we will not have a money-losing business. Every bank that participates in the investment is going to be profitable," Lee said.

Chinatrust Commercial Bank (中國信託商銀) recently said that it's going to cooperate with Goldman Sachs to set up an asset management company, and China Development Bank (中華開發) said it plans to set up one as well.

"The 35 banks that have decided to participate have already filed their share subscriptions," Lee said.

Lin Cheng-kuo (林振國), former finance minister and current chairman of the Association of Foreign Trade (外貿協會) is likely to be the chairman of the asset management company set up by the Bankers' Association, sources said.

In addition, the Bankers' Association is likely to set up a financial assets services company (金融資產服務公司) with capital between NT$300 million and NT$500 million. The company would act as a third party to hold auctions on bank collateral.

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