The Financial Supervisory Commission (FSC) yesterday set banks a record lending target to small and medium-sized businesses of NT$240 billion (US$7.98 billion), despite uncertainty caused by the tapering of US quantitative easing.
The financial regulator announced the target after a meeting with top banking executives. It was a show of support for small and medium-sized companies, as lenders tend to tighten lines of credit in times of volatility.
While seeking to achieve the goal, banks should nevertheless exercise due caution, diversify their risk, and disclose details in line with accountability and transparency requirements, the commission said.
The FSC specifically asked banks to reveal the extent of their exposure to China, where reports of loan defaults are escalating.
The regulator also urged local lenders to use fair interest rates when they carry out inter-bank lending, after several international banks were caught profiting through rigging borrowing rates.
The FSC reiterated concerns over underpricing practices among financial institutions, saying vicious competition is unfavorable for the nation’s financial stability.
Separately, the commission approved plans by Financial Information Co (財金公司) to team up with local financial institutions and offer payment services in China and other nations via the China UnionPay Co (中國銀聯) network.
The new venture will not be available for local customers until after the cross-strait service trade agreement clears the legislature, the commission said.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range
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