Rules for troubled bank auction to be announced online

The PricewaterhouseCoopers Financial Advisory Services Co (普華國際財顧) is scheduled to announce next week on behalf of the government the auction rules for the sale of three troubled financial institutions taken over by the government, the Financial Supervisory Commission said yesterday.

The financial advisory agency, which serves as an adviser to the government's financial restructuring fund, will announce the information on the Central Deposit Insurance Corp's (CDIC, 中央存保) Web site, www.cdic.gov.tw, said Shiau Chang-ruey (蕭長瑞), a section chief in the commission's Banking Bureau.

Only three out of four lenders previously taken over would be put up for auction at this time, Shiau said.

They are Taitung Business Bank (台東企銀), Enterprise Bank of Hualien (花蓮企銀) and The Chinese Bank (中華銀行).

The three banks will be auctioned off separately, he said.

Enterprise Bank of Hualien will be the first one to be sold and the rules would be made public on Monday, CDIC President Johnson Chen (陳戰勝) said.

Bids for the Hualien-based lender would close on May 31, for Taitung Business Bank on June 7 and The Chinese Bank at the end of July, he said.

Since the bidding period for Enterprise Bank of Hualien and Taitung Business Bank overlap, interested buyers would be allowed to tender bids for both lenders, the official added.

The three banks have a combined 97 branches, which would be attractive to both local lenders and foreign rivals seeking a fast network expansion.

China United Trust and Investment Corp (中聯信託), which was taken over at the end of last month, is in the process of being evaluated and would be put in the next round of auctions, Shiau said without giving a timeframe.