Taiwan's first asset management company (AMC) is expected to apply to authorities for a company license with a registered capitalization of NT$25 billion before the end of March, the Commercial Times reported yesterday.
The new AMC -- officially named Taiwan Asset Management Co (TAMC,
The company's founding shareholders are 35 domestic banks. It is scheduled to complete its incorporation registration with the Ministry of Economic Affairs (
An AMC disposes collateral held by domestic banks generated from NT$1 trillion-plus non-performing loans.
Lin Cheng-kuo (
According to Lin, the company has currently raised NT$15 billion in capital from its 35 member banks. In the next stage, another NT$10 billion would be raised from foreign investors and domestic non-financial institutions. The new company is scheduled to operate in the second half of this year, with NT$25 billion of capital.
"The first AMC is expected to fully develop its AMC function in one to two years," said Lin at the founders' meeting.
"After the company is established, it will dispose of problematic assets held by member banks at an early stage. But it will also accept problematic assets from non-member banks if we are asked to do so," said Lin.
Lin added that before it applies for a corporate license next month, there would be at least five more banks participating as member banks, which would mean the number of member banks would exceed 40.
The board of directors will consist of nine to 15 members. Currently, nine directors have been named, and six more directorships have been left for future shareholders, including foreign investors and non-financial institutions, according to Lin.
"A number of foreign and domestic companies have expressed interest in participating in the new AMC. After the operation plan is completed, we will invite these potential investors," said Lin.
"According to Article 15 of the Financial Institutions Law, the losses after banks sell their problematic assets to AMCs, can be written off in the next five years," said Lin. "Through auctioning by the AMCs and financial assets service companies (FASCs), the long period time required by a court's auctioning process could be shortened. The AMC will provide an alternative for the banking industry when disposing of problematic assets."
Since the business of an AMC is a new field for domestic banks, how TAMC is going to compete with foreign players has become a controversial issue.
"First, I would like to stress that establishing an AMC is not like building a space shuttle -- it does not require such high technology," said Lin. "We do not have to see the task as extremely difficult. Actually it's quite simple to run an AMC if it operates efficiently on disposing problematic assets from domestic banks. If we apply new concepts and a positive attitude, and manage it with flexibility, I believe we will complete the task. We just have to be self-confident."
Lin said that as the first domestic AMC, he expects to become the most successful AMC. "We will never lose to our competitors," vowed Lin in the meeting.
"However, since our personnel require some training and practice at this early stage, we anticipate that TAMC will be up to full speed in one to two years after setting up. Some patience is required at the beginning," stressed Lin.
RESPONSE: The transit sends a message that China’s alignment with other countries would not deter the West from defending freedom of navigation, an academic said Canadian frigate the Ville de Quebec and Australian guided-missile destroyer the Brisbane transited the Taiwan Strait yesterday morning, the first time the two nations have conducted a joint freedom of navigation operation. The Canadian and Australian militaries did not immediately respond to requests for comment. The Ministry of National Defense declined to confirm the passage, saying only that Taiwan’s armed forces had deployed surveillance and reconnaissance assets, along with warships and combat aircraft, to safeguard security across the Strait. The two vessels were observed transiting northward along the eastern side of the Taiwan Strait’s median line, with Japan being their most likely destination,
GLOBAL ISSUE: If China annexes Taiwan, ‘it will not stop its expansion there, as it only becomes stronger and has more force to expand further,’ the president said China’s military and diplomatic expansion is not a sole issue for Taiwan, but one that risks world peace, President William Lai (賴清德) said yesterday, adding that Taiwan would stand with the alliance of democratic countries to preserve peace through deterrence. Lai made the remark in an exclusive interview with the Chinese-language Liberty Times (sister paper of the Taipei Times). “China is strategically pushing forward to change the international order,” Lai said, adding that China established the Asia Infrastructure Investment Bank, launched the Belt and Road Initiative, and pushed for yuan internationalization, because it wants to replace the democratic rules-based international
RELEASED: Ko emerged from a courthouse before about 700 supporters, describing his year in custody as a period of ‘suffering’ and vowed to ‘not surrender’ Former Taiwan People’s Party (TPP) chairman Ko Wen-je (柯文哲) was released on NT$70 million (US$2.29 million) bail yesterday, bringing an end to his year-long incommunicado detention as he awaits trial on corruption charges. Under the conditions set by the Taipei District Court on Friday, Ko must remain at a registered address, wear a GPS-enabled ankle monitor and is prohibited from leaving the country. He is also barred from contacting codefendants or witnesses. After Ko’s wife, Peggy Chen (陳佩琪), posted bail, Ko was transported from the Taipei Detention Center to the Taipei District Court at 12:20pm, where he was fitted with the tracking
The National Development Council (NDC) yesterday unveiled details of new regulations that ease restrictions on foreigners working or living in Taiwan, as part of a bid to attract skilled workers from abroad. The regulations, which could go into effect in the first quarter of next year, stem from amendments to the Act for the Recruitment and Employment of Foreign Professionals (外國專業人才延攬及僱用法) passed by lawmakers on Aug. 29. Students categorized as “overseas compatriots” would be allowed to stay and work in Taiwan in the two years after their graduation without obtaining additional permits, doing away with the evaluation process that is currently required,
RSS