The Financial Supervisory Com-mission abruptly announced late last night that it would take over The Chinese Bank (中華銀行) after two subsidiaries under its parent company, Rebar Asia Pacific Group, claimed insolvency protection.
The decision was made after the takeover of troubled Enterprise Bank of Hualien (花蓮企銀) yesterday afternoon in an unprecedented case of the govenment taking over two lenders in a single day.
The commission was to delegate the Central Deposit Insurance Corp to take over the bank at midnight last night. The comission also immediately suspended all powers held by The Chinese Bank's board, supervisors and shareholders. Its board directors have been banned from leaving the country and their assets have been frozen.
The bank's net worth had reached negative NT$15.3 billion (US$469 million). Its shares will be traded in cash transaction only starting on Monday.
"Panicked depositors withdrew NT$13 billion as of yesterday, which consumed all the bank's cash," commission Chairman Shih Jun-ji (
Central Deposit Insurance will inject NT$30 billion into the bank on Monday to handle further withdrawals, he said, "and every penny of people's deposits is fully secure."
The debt-ridden bank's operations will continue as normal during the takeover period, he said.
It appeared that the financial regulator misjudged the whole situation, as
Shih assured the public yesterday afternoon that they are able to but would
not take over the Chinese Bank. "We did not expect things to become so worse
with this scale of bank runs beforehand," Shih said.
He said the commission will introspect the whole process afterwards and he
would bear the responsibility for consequences if there's any.
also see story:
Rebar admits notification delay
The CIA has a message for Chinese government officials worried about their place in Chinese President Xi Jinping’s (習近平) government: Come work with us. The agency released two Mandarin-language videos on social media on Thursday inviting disgruntled officials to contact the CIA. The recruitment videos posted on YouTube and X racked up more than 5 million views combined in their first day. The outreach comes as CIA Director John Ratcliffe has vowed to boost the agency’s use of intelligence from human sources and its focus on China, which has recently targeted US officials with its own espionage operations. The videos are “aimed at
STEADFAST FRIEND: The bills encourage increased Taiwan-US engagement and address China’s distortion of UN Resolution 2758 to isolate Taiwan internationally The Presidential Office yesterday thanked the US House of Representatives for unanimously passing two Taiwan-related bills highlighting its solid support for Taiwan’s democracy and global participation, and for deepening bilateral relations. One of the bills, the Taiwan Assurance Implementation Act, requires the US Department of State to periodically review its guidelines for engagement with Taiwan, and report to the US Congress on the guidelines and plans to lift self-imposed limitations on US-Taiwan engagement. The other bill is the Taiwan International Solidarity Act, which clarifies that UN Resolution 2758 does not address the issue of the representation of Taiwan or its people in
US Indo-Pacific Commander Admiral Samuel Paparo on Friday expressed concern over the rate at which China is diversifying its military exercises, the Financial Times (FT) reported on Saturday. “The rates of change on the depth and breadth of their exercises is the one non-linear effect that I’ve seen in the last year that wakes me up at night or keeps me up at night,” Paparo was quoted by FT as saying while attending the annual Sedona Forum at the McCain Institute in Arizona. Paparo also expressed concern over the speed with which China was expanding its military. While the US
SHIFT: Taiwan’s better-than-expected first-quarter GDP and signs of weakness in the US have driven global capital back to emerging markets, the central bank head said The central bank yesterday blamed market speculation for the steep rise in the local currency, and urged exporters and financial institutions to stay calm and stop panic sell-offs to avoid hurting their own profitability. The nation’s top monetary policymaker said that it would step in, if necessary, to maintain order and stability in the foreign exchange market. The remarks came as the NT dollar yesterday closed up NT$0.919 to NT$30.145 against the US dollar in Taipei trading, after rising as high as NT$29.59 in intraday trading. The local currency has surged 5.85 percent against the greenback over the past two sessions, central
RSS