The legislature yesterday passed an amendment to the Banking Law (銀行法) that established an exit mechanism for banks with a low capital adequacy ratio.
The amendment said that any banks that showed capital adequacy ratios of under 2 percent would have to close if they failed to improve the ratio within a period of time set by the government.
The amendment also authorizes the Financial Supervisory Commission to take over a bank 90 days after the bank’s capital adequacy ratio drops below 2 percent.
The commission would have the power to operate the bank and manage and handle the bank’s property, the amendment said.
PREVENTION
Chinese Nationalist Party Legislator Lo Shu-lei (羅淑蕾), who participated in the review of the amendment, said the passage gave the government the authority to prevent owners or managers of poorly run banks from embezzling funds.
The amendment also lowers the threshold for banks to disclose information about bad debtors.
The current regulation only allows banks to reveal the identity of bad debtors who owe more than NT$100 million (US$2.9 million), while the amendment lowers the number to NT$50 million.
SHAREHOLDERS
The amendment requires anyone who owns more than 5 percent of the shares of a bank to report to the commission.
Anyone who would like to possess more than 10 percent, 25 percent or 50 percent of a bank’s shares would have to seek the commission’s permission.
The amendment scraps a ban in the current law disallowing anyone to own more than 25 percent of a bank’s issued shares.
SECOND-RATE: Models distilled from US products do not perform the same as the original and undo measures that ensure the systems are neutral, the US’ cable said The US Department of State has ordered a global push to bring attention to what it said are widespread efforts by Chinese companies, including artificial intelligence (AI) start-up DeepSeek (深度求索), to steal intellectual property from US AI labs, according to a diplomatic cable. The cable, dated Friday and sent to diplomatic and consular posts around the world, instructs diplomatic staff to speak to their foreign counterparts about “concerns over adversaries’ extraction and distillation of US AI models.” Distillation is the process of training smaller AI models using output from larger, more expensive ones to lower the costs of training a powerful new
Singapore-based ride-hailing and delivery giant Grab Holdings’ planned acquisition of Foodpanda’s Taiwan operations has yet to enter the formal review stage, as regulators await supplementary documents, the Fair Trade Commission (FTC) said yesterday. Acting FTC Chairman Chen Chih-min (陳志民) told the legislature’s Economics Committee that although Grab submitted its application on March 27, the case has not been officially accepted because required materials remain incomplete. Once the filing is finalized, the FTC would launch a formal probe into the deal, focusing on issues such as cross-shareholding and potential restrictions on market competition, Chen told lawmakers. Grab last month announced that it would acquire
Shares of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) have repeatedly hit new highs, but an equity analyst said the stock’s valuation remains within a reasonable range and any pullback would likely be technical. The contract chipmaker’s historical price-to-earnings (P/E) ratio has ranged between 20 and 30, Cathay Futures Consultant Co (國泰證期) analyst Tsai Ming-han (蔡明翰) told Central News Agency. With market consensus projecting that TSMC would post earnings per share of about NT$100 (US$3.17) this year, supported by strong global demand for artificial intelligence (AI) applications, and the stock currently trading at a P/E ratio of below 25, Tsai said the valuation
The artificial intelligence (AI) boom has triggered a seismic reshuffling of global equity markets, with Taiwan and South Korea muscling past European nations one by one. With its stock market now valued at nearly US$4.3 trillion, Taiwan surpassed the UK, Europe’s biggest market, earlier this month, data compiled by Bloomberg showed. South Korea is about US$140 billion away from doing the same. The tech-heavy Asian markets have shot past Germany and France in the past seven months. The shift is largely down to massive gains in shares of three companies that provide essential hardware for AI: Taiwan Semiconductor Manufacturing Co (TSMC, 台積電),
RSS