CTBC Bank (中國信託商銀) was the only bank among the nation’s six “domestic systemically important banks” (D-SIB) that retained a capital adequacy gauge above the minimum requirements as of the end of June, data released last week by the Financial Supervisory Commission showed.
Five other D-SIBs failed to meet the requirements of 11 percent for a common equity tier-1 ratio, 12.5 percent for a tier-1 capital ratio and 14.5 percent for capital adequacy ratio, as set by the regulator due to the effects of volatile financial markets, the commission said.
CTBC’s common equity tier-1 ratio, tier-1 capital ratio and capital adequacy ratio stood at 11.7 percent, 13.29 percent and 15.15 percent respectively at the end of June, commission data showed.
Photo courtesy of CTBC Bank Co
These gauges provide regulators and investors with the information required to estimate whether a bank can withstand financial stress. To meet higher requirements, a bank usually boosts its core capital or reduces its loans.
The other five banks are Taipei Fubon Commercial Bank (台北富邦銀行), Cathay United Bank (國泰世華銀行), Mega International Commercial Bank (兆豐銀行), Taiwan Cooperative Bank (合庫銀行) and First Commercial Bank (第一銀行).
The commission said the five banks saw some or all of their capital gauges fall below the minimum requirements because of higher risk-weighted assets such as mortgages, or due to falling core capital like shareholders’ equity or retained earnings, it said, adding that banks should promptly improve their capital standards.
Banks in Taiwan reported an average common equity tier-1 ratio of 10.8 percent, tier-1 capital ratio of 12.03 percent and capital adequacy ratio of 14.22 percent at the end of June.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, booked its first-ever profit from its Arizona subsidiary in the first half of this year, four years after operations began, a company financial statement showed. Wholly owned by TSMC, the Arizona unit contributed NT$4.52 billion (US$150.1 million) in net profit, compared with a loss of NT$4.34 billion a year earlier, the statement showed. The company attributed the turnaround to strong market demand and high factory utilization. The Arizona unit counts Apple Inc, Nvidia Corp and Advanced Micro Devices Inc among its major customers. The firm’s first fab in Arizona began high-volume production
VOTE OF CONFIDENCE: The Japanese company is adding Intel to an investment portfolio that includes artificial intelligence linchpins Nvidia Corp and TSMC Softbank Group Corp agreed to buy US$2 billion of Intel Corp stock, a surprise deal to shore up a struggling US name while boosting its own chip ambitions. The Japanese company, which is adding Intel to an investment portfolio that includes artificial intelligence (AI) linchpins Nvidia Corp and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), is to pay US$23 a share — a small discount to Intel’s last close. Shares of the US chipmaker, which would issue new stock to Softbank, surged more than 5 percent in after-hours trading. Softbank’s stock fell as much as 5.4 percent on Tuesday in Tokyo, its
The prices of gasoline and diesel at domestic fuel stations are to rise NT$0.1 and NT$0.4 per liter this week respectively, after international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) announced yesterday. Effective today, gasoline prices at CPC and Formosa stations are to rise to NT$27.3, NT$28.8 and NT$30.8 per liter for 92, 95 and 98-octane unleaded gasoline respectively, the companies said in separate statements. The price of premium diesel is to rise to NT$26.2 per liter at CPC stations and NT$26 at Formosa pumps, they said. The announcements came after international crude oil prices
SETBACK: Apple’s India iPhone push has been disrupted after Foxconn recalled hundreds of Chinese engineers, amid Beijing’s attempts to curb tech transfers Apple Inc assembly partner Hon Hai Precision Industry Co (鴻海精密), also known internationally as Foxconn Technology Group (富士康科技集團), has recalled about 300 Chinese engineers from a factory in India, the latest setback for the iPhone maker’s push to rapidly expand in the country. The extraction of Chinese workers from the factory of Yuzhan Technology (India) Private Ltd, a Hon Hai component unit, in southern Tamil Nadu state, is the second such move in a few months. The company has started flying in Taiwanese engineers to replace staff leaving, people familiar with the matter said, asking not to be named, as the
RSS