The vice premier announced plans on Friday to create a financial asset securitization mechanism (
"We are actively promoting the establishment of asset management companies to solve the bad and non-performing loan problem in the banking sector. If the financial asset securitization measure can be put in place at the same time, it would optimize the function of asset management companies. The benefits of the measure include increasing the liquidity of financial institutions, improving their capital structure and diversify their credit risk," Vice Premier Lai In-jau (賴英照) said.
The plan is also expected to help diversify financial products and internationalize the financial market.
"Financial asset securitization would bundle all kinds of loans and then sell them in the form of securities," Lai said. "Credit card loans, automobile loans, and mortgage loans can be bundled in a new type of securities and sold in the market. This could greatly increase the liquidity of the loans. More importantly, it could spred the financial sector's credit risk."
The new measure will allow various financial institutions such as AMCs to sell mortgages to a secondary market -- a place where mortgages would be bought and sold by various invest-ors. These secondary-market institutions, known in the US as Fannie Maes, don't lend money directly to home buyers, but rather ensure that mortgage funds are always available to lenders.
Once the new measure is established, lenders will either be able to hold mortgages in their own portfolio or they can sell the mortgages to secondary-market investors.
Lai said the new measure will begin taking shape in the financial market starting this week.
The mechanism will be carried out in several stages. The first stage will include credit loans and mortgages, which does not require amending existing laws. Next, a special task force headed by Minister of Finance Yen Ching-chang (顏慶章) will work on amending related laws measures.
"The moves will help reform the financial system," Lai said. "The effect should be felt in the long-term."
After meeting with the premier on Friday, representatives from the Ministry of Interior (
Taiwan Transport and Storage Corp (TTS, 台灣通運倉儲) yesterday unveiled its first electric tractor unit — manufactured by Volvo Trucks — in a ceremony in Taipei, and said the unit would soon be used to transport cement produced by Taiwan Cement Corp (TCC, 台灣水泥). Both TTS and TCC belong to TCC International Holdings Ltd (台泥國際集團). With the electric tractor unit, the Taipei-based cement firm would become the first in Taiwan to use electric vehicles to transport construction materials. TTS chairman Koo Kung-yi (辜公怡), Volvo Trucks vice president of sales and marketing Johan Selven, TCC president Roman Cheng (程耀輝) and Taikoo Motors Group
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
RECORD-BREAKING: TSMC’s net profit last quarter beat market expectations by expanding 8.9% and it was the best first-quarter profit in the chipmaker’s history Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which counts Nvidia Corp as a key customer, yesterday said that artificial intelligence (AI) server chip revenue is set to more than double this year from last year amid rising demand. The chipmaker expects the growth momentum to continue in the next five years with an annual compound growth rate of 50 percent, TSMC chief executive officer C.C. Wei (魏哲家) told investors yesterday. By 2028, AI chips’ contribution to revenue would climb to about 20 percent from a percentage in the low teens, Wei said. “Almost all the AI innovators are working with TSMC to address the
FUTURE PLANS: Although the electric vehicle market is getting more competitive, Hon Hai would stick to its goal of seizing a 5 percent share globally, Young Liu said Hon Hai Precision Industry Co (鴻海精密), a major iPhone assembler and supplier of artificial intelligence (AI) servers powered by Nvidia Corp’s chips, yesterday said it has introduced a rotating chief executive structure as part of the company’s efforts to cultivate future leaders and to enhance corporate governance. The 50-year-old contract electronics maker reported sizable revenue of NT$6.16 trillion (US$189.67 billion) last year. Hon Hai, also known as Foxconn Technology Group (富士康科技集團), has been under the control of one man almost since its inception. A rotating CEO system is a rarity among Taiwanese businesses. Hon Hai has given leaders of the company’s six