Japan's government is giving Mizuho Financial Group Inc, Sumitomo-Mitsui Financial Group Inc, and rival banks until July 30 to explain their failure to meet profit goals in return for taxpayer-funded bailouts after 1999. \nThe deadline, contained in a letter sent to banks, calls for the lenders to make a case to regulators detailing why they missed targets. The two-page document also outlines corrective action if regulators view the explanation as inadequate, including forcing the banks to submit new business improvement plans by Aug. 29, according to a copy obtained by Bloomberg News from one of the banks. \n"We can't comment on any pending cases about specific banks," said Hirofumi Gomi, chief of the supervisory bureau at Japan's Financial Services Agency, Japan's banking regulator. \nThe government previously warned banks to meet lending targets to small businesses set when it extended public funds to bolster their capital. The possibility regulators will also hold banks accountable for profit goals marks a tougher stance by the government, and one that is opposed by some lawmakers, who say unhappy lenders are being asked to write off bad loans and be profitable at the same time. \nNone of the nation's top seven lenders booked net income during the two years ended March 31, racking up a combined net loss of ?8.7 trillion (US$73 billion) during the period. \nJapan transferred ?8.6 trillion to predecessors of Mizuho, Sumitomo Mitsui, UFJ Holdings Inc and other banks during the three years from March 1999, demanding they devise and meet financial goals. Bank officials declined to comment on the letter from the Financial Services Agency setting a deadline next week. \nMitsubishi Tokyo Financial Group Inc, Japan's third-largest bank by assets, is the only one of the country's seven big lenders that doesn't owe money from the government bailouts. \nBanks that fail to persuade the regulators about the reasons for not meeting previous goals will have to demonstrate how they can achieve future targets, according to the letter. They will also be required to provide progress reports every three months to the regulators, the document said.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
ROW: A probe would determine if the rights of shareholders who were not allowed to vote yesterday had been violated, while the stock exchange also wants answers The election of board directors yesterday at Tatung Co (大同) sparked controversy after the company blocked some institutional and individual shareholders from participating in the general shareholders’ meeting, prompting the Financial Supervisory Commission (FSC) to announce that the vote would be investigated. Lin Kuo Wen-yen (林郭文艷) was re-elected as chairwoman of the household-appliance maker’s nine-member board, but prior to the vote she announced that several shareholders would not have voting rights. They were being denied a vote because they had contravened the Business Mergers and Acquisitions Act (企業併購法), and the Act Governing Relations Between the People of the Taiwan Area and