The sale of Chinfon Commercial Bank’s (慶豐銀行) assets, liabilities and its operations — the so-called “good bank” part of the debt-ridden lender — was aborted yesterday because of differences over their value, the Central Deposit Insurance Corp (CDIC, 中央存保) said.
The CDIC refused to provide details about the failed transaction, except to say that it could not cut a deal with state-run Bank of Taiwan (臺灣銀行) over the amount of the subsidy Bank of Taiwan was requesting from the state-run financial restructuring fund.
Chinfon is the only remaining troubled bank under the CDIC’s control. The CDIC took control of Chinfon in September last year.
Local media speculated that the Bank of Taiwan were probably asking for a subsidy of between NT$30 billion (US$914 million) and NT$40 billion, in light of Chinfon’s approximate debts of NT$30 billion.
Currently, the financial restructuring fund has NT$22.4 billion in assets, but it can only utilize NT$1.7 billion after setting aside NT$20.7 billion to help farmers’ and fishermen’s associations. The restructuring fund has spent NT$275.3 billion bailing out troubled banks since its establishment in 2001, government figures showed.
On Sunday, union members at Bank of Taiwan staged a demonstration in front of the Ministry of Finance to protest the bank’s planned acquisition of Chinfon on the grounds that the deal may water down the bank’s profits and employee benefits.
Bank of Taiwan chairwoman Susan Chang (張秀蓮) said she would respect the opinion of employees.
Luxury hotel Mandarin Oriental Taipei (文華東方酒店) plans to reopen its guestrooms in December to take advantage of a boom in domestic travel. The reopening would come six months after the five-star facility suspended room operations to cut costs as countries across the region impose border controls to contain the COVID-19 pandemic, diminishing demand for business travel. “We are delighted to share that Mandarin Oriental Taipei will resume room operations on December 1,” the hotel said in a statement yesterday. The hotel in Songshan District (松山) said it would adopt stringent health and safety practices to ensure the well-being of its guests and employees. It
India’s COVID-19 economic gloom turned into despair this week, on news that its per capita GDP for this year might be lower than that of Bangladesh. “Any emerging economy doing well is good news,” Kaushik Basu, a former World Bank chief economist, said on Twitter after the IMF updated its World Economic Outlook. “But it’s shocking that India, which had a lead of 25% five years ago, is now trailing.” Ever since it began opening up the economy in the 1990s, India’s dream has been to emulate China’s rapid expansion. After three decades of persevering with that campaign, slipping behind Bangladesh hurts
When the COVID-19 pandemic shut down bars and concert halls in the US in March, a new phenomenon was born: the vacation-rental nightclub. Professional party promoters started scanning Airbnb, Vrbo and other short-term rental sites for mansions and luxury condos for hire. Tickets were going for US$90 on Eventbrite and TikTok for soirees with bottle service and DJs. “People were looking to escape from their own homes and came into our tiny neighborhood to party all day, every day,” said Kristen Robinson Doe, a resident of a quiet suburban Dallas neighborhood, where a party pad was being rented out for more than
HSBC Bank (Taiwan) Ltd (匯豐台灣商銀) has approved two sustainability-linked loans totaling NT$450 million (US$15.55 million) for Taya Group (大亞集團) and Sinbon Electronics Co (信邦電子), the bank said yesterday, adding that interest rates would fall if the borrowers’ sustainability performance improves. Those marked the first sustainability-linked loans granted by HSBC Taiwan, it said. While HSBC Taiwan has experience providing green loans for the nation’s developers of renewable energy sources to support their projects, the bank began focusing on sustainability-linked loans to meet rising demand from companies in other sectors planning to undertake sustainability programs, it said. “As we reward our clients who reach their