Wed, Jun 27, 2007 - Page 12 News List

Bowa Bank takeover not expected soon

By Amber Chung  /  STAFF REPORTER

Although its unaudited book value reportedly turned negative last month, Bowa Bank (寶華銀行) may linger for a while without being taken over by the government anytime soon.

A negative book value conventionally triggers government takeover of troubled banks in Taiwan, and Bowa is one of the three lenders that remain blacklisted by the government on suspicion of having a negative book value.

"We will refer to the audited figures reported by public certified accountants when considering possible action against Bowa," Lin Tung-liang (林棟樑), secretary-general of the Financial Supervisory Commission's banking bureau, said yesterday.

Companies usually publish their first-half financial statements by the end of August, commission secretary-general Austin Chan (詹庭禎) said.

However, both Lin and Chan refused to link the timeframe to a takeover of Bowa.

Bowa yesterday approved a plan to raise NT$8 billion (US$244 million) at its annual general meeting as a way to improve its financial structure. The lender said it remained in talks with interested investors.

The bank incurred a deficit of NT$2 billion on net worth of NT$41 billion in the first four months of the year, the bureau's data show.

The commission said it would look into Bowa's sale of its defaulted loan assets.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top