No more doom and gloom for local banks?

This demand for cash during the Chinese New Year -- and the falling interest rates in the US -- has prompted some analysts to expect more drastic measures, including a cut in the local interest rates.

"Now is the right time to cut interest rates," reckons Roger Yang, a fund manager with ABN AMRO Asset Management in Taipei. If the Central Bank indeed slashes the rate, local stocks may see another upward rally, analysts say.