The government may take over more banks this year as depositors shun those with poor credit profiles, the local unit of Standard & Poor's Ratings Services said yesterday.
Government bailouts have led worried depositors to put their money with more reputable banks, exacerbating funding problems, said the unit, Taiwan Ratings Corp (中華信評).
The government has rescued six failing financial institutions over the past 14 months, it said.
"Fund-starved banks face significant challenges to overcome the negative sentiment and secure new business," Susan Chu (
The statement indicated that the worst might not be over for Taiwanese banks after last year's recovery from a surge in credit-card loan defaults that crimped earnings the previous two years.
For lower-rated banks, holders of subordinated debt and similar instruments not guaranteed by the government face increasing risks, it said.
The risk of firms and governments in the Asia Pacific region defaulting on their debt rose to records this week after American International Group Inc reported credit-default swap losses were four times higher than forecast.
Still, the local banking system "remains largely stable," Taiwan Ratings said, as the failed and vulnerable institutions account for a small proportion of assets.
Banks wrote off NT$58.3 billion (US$1.8 billion) in credit-card debt in the first 11 months of last year, about 54 percent of the amount in the same period in 2006, the Financial Supervisory Commission said.
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
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E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to