CTBC Bank (中國信託銀行), Cathay United Bank (國泰世華銀行), Taipei Fubon Bank (台北富邦銀行), Mega International Commercial Bank (兆豐銀行) and Taiwan Cooperative Bank (合庫銀行) are categorized as “domestic systemically important banks (D-SIB)” and are therefore subject to higher capital standards, the Financial Supervisory Commission (FSC) announced on Thursday last week.
These D-SIBs would also be subject to tighter supervision and new rules, as their failure would cause significant disruption to the nation’s banking system and the overall economy, FSC Chairman Wellington Koo (顧立雄) told a news conference.
The commission would require these banks to maintain a minimum common equity tier-1 ratio of 11 percent, a minimum tier-1 capital ratio of 12.5 percent and no less than 14.5 percent in total capital adequacy ratio, Koo said.
The new capital cushion standards are 4 percentage points higher than those for regular banks, he said, adding that the five banks would have four years to increase their capital to meet the new standards.
Overall, banks in Taiwan reported an average common equity tier-1 ratio of 11.37 percent, tier-1 capital ratio of 12.04 percent and total capital adequacy ratio of 14.14 percent, Banking Bureau data showed.
The commission formed a task force two years ago to set the criteria for identifying D-SIBs to limit potential contagion risks in times of crisis.
The five banks were selected based on their market capitalization, their interconnection with peers, their substitutability by peers in terms of functions and services, as well as the complexity of their operations, which are in line with the standards set by the Basel Committee on Banking Supervision, Koo said.
“Being a D-SIB is honorable, but also means more responsibility. There is an advantage, as they will have privileges when applying to launch new business or products,” Koo said.
However, he rejected the idea that the D-SIBs are “too big to fail,” saying that every bank matters, given that they all have a similar shares of the Taiwan market.
Among the five banks, only CTBC has met the new standards, while Cathay United, Taipei Fubon and Mega do not meet one or two ratios and Taiwan Cooperative does not meet any, the Banking Bureau data showed.
The commission said it plans to review and update its D-SIB designations annually.
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
‘IMMENSE SWAY’: The top 50 companies, based on market cap, shape everything from technology to consumer trends, advisory firm Visual Capitalist said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was ranked the 10th-most valuable company globally this year, market information advisory firm Visual Capitalist said. TSMC sat on a market cap of about US$915 billion as of Monday last week, making it the 10th-most valuable company in the world and No. 1 in Asia, the publisher said in its “50 Most Valuable Companies in the World” list. Visual Capitalist described TSMC as the world’s largest dedicated semiconductor foundry operator that rolls out chips for major tech names such as US consumer electronics brand Apple Inc, and artificial intelligence (AI) chip designers Nvidia Corp and Advanced
Pegatron Corp (和碩), an iPhone assembler for Apple Inc, is to spend NT$5.64 billion (US$186.82 million) to acquire HTC Corp’s (宏達電) factories in Taoyuan and invest NT$578.57 million in its India subsidiary to expand manufacturing capacity, after its board approved the plans on Wednesday. The Taoyuan factories would expand production of consumer electronics, and communication and computing devices, while the India investment would boost production of communications devices and possibly automotive electronics later, a Pegatron official told the Taipei Times by telephone yesterday. Pegatron expects to complete the Taoyuan factory transaction in the third quarter, said the official, who declined to be
RSS