■ FSC plans new banking rules
The Financial Supervisory Commission yesterday announced amended banking regulations that allow foreign financial holding firms to set up subsidiaries and acquire local rivals, in a bid to encourage international players to bid for troubled banks the government has taken over and push consolidation of Taiwan's crowded banking sector.
The new regulation is due to take effect two weeks from now, following the approval of the commission's members.
"This is meant to expedite consolidation and facilitate internationalization of the nation's banking sector," the commission's spokesperson Susan Chang (張秀蓮) said.
The commission said the amendment would pave the way for foreign lenders to participate in auctions and take over branches of problematic local lenders the regulator has taken over.
■ FX reserves dip lower
The nation's foreign exchange reserves totaled US$267.49 billion at the end of last month, down slightly from the record US$267.99 billion at the end of February, the nation's central bank said in a statement released yesterday.
The decrease mainly reflected a net capital outflow due to foreign investor sales on the stock market, the statement said.
■ Taiwan life plans China stake
The nation's first local insurer Taiwan Life Insurance Co (台灣人壽), has signed a confidential agreement with a Shanghai-based insurer to tap into the Chinese market. Taiwan Life will invest an undisclosed amount in the Chinese firm to expand its business scope, chairman Chu Ping-yu (朱炳昱) said on Tuesday.
If things go smoothly, Taiwan Life will become the third Taiwanese insurer to set up operations across the Taiwan Strait.
Cathay Life Insurance (國泰人壽), the nation's largest life insurer, made inroads into China in January 2005 by forming a joint venture with Beijing's state-run China Eastern Airlines Corp (東方航空). Shin Kong Life Insurance Co (新光人壽) has applied to partner with China's Hainan Airlines Co (海南航空), and is awaiting the regulator's approval.
■ China Airlines plans new route
To meet the surging travel demand in southern Taiwan, China Airlines Ltd (華航) announced yesterday it would provide a passenger service between Kaohsiung and Chiang Mai, the second-largest city in Thailand, starting on April 18.
The Chiang Mai-bound flight would depart Kaohsiung every Wednesday, Thursday and Sunday at 7am and arrive at Chiang Mai International Airport at 9:35am.
China Airlines yesterday also announced additional flights for the summer.
Starting March 25, the Taipei-Honolulu nonstop route would be increased to three flights per week, the Taipei-Seattle-Houston route to four flights per week, and the Taipei-Phuket route from three flights per week to one flight every two days.
From May 7, the Taipei-Phnom Penh route would be increased to seven flights per week, the airline said.
■ EVA Airways posts loss
EVA Airways Corp (長榮), the nation's second-largest air carrier, posted a loss last year after fuel costs surged.
The firm's loss was NT$1.69 billion (US$51 million), compared with a net income of NT$1.33 billion the previous year, the firm said in a statement to the Taiwan Stock Exchange yesterday.
■ NT dollar shows small gain
The New Taiwan dollar gained against its US counterpart yesterday, rising NT$0.035 to close at NT$33.081 on the Taipei Forex Inc.
Turnover was US$762 million.
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