Wed, Sep 03, 2014 - Page 14 News List

Taiwan Financial targets regulatory shift, not IPO: head

By Crystal Hsu  /  Staff reporter

State-owned Taiwan Financial Holding Co (台灣金控) is pressing for regulatory relaxation that would let the conglomerate improve its capitalization and revitalize idle assets, but is not pursuing an initial public offering (IPO) or share sales, company chairwoman Lee Jih-chu (李紀珠) said.

Lee made the clarifications in a statement on Monday after local Chinese-language media outlets reported that the group is seeking an IPO or share transfers to introduce strategic partners.

“Taiwan Financial is pushing for regulatory easing so it can convert excess earnings into capital and enhance funding efficiency,” Lee said in the statement.

The bank-focused conglomerate needs approval from both the Ministry of Finance and the Financial Supervisory Commission before making policy changes.

Lee said earlier this year that the company planned to set up a fund-utilization committee to better manage the banking subsidiary Bank of Taiwan’s (台灣銀行) funds and investment strategy.

“What the group needs is relaxed personnel, accounting, procurement and budget regulations, so it can better realize its earning potential,” Lee said.

An IPO or share sales are not important or urgent at this stage and the company has yet to reach a conclusion on the matter.

Another state-owned lender, Land Bank of Taiwan (土地銀行), has made clear its intention to raise new funds through an IPO to bolster its capital adequacy ratio, which is lagging behind peers.

The Bank of Taiwan has to support government policies and therefore approach things from the government’s perspective, Lee said.

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