With the possibility of military conflict between Russia and Ukraine rising steeply, coupled with concerns about a potential disruption to the global market, the Financial Supervisory Commission (FSC) has conducted an assessment of Taiwan’s risk exposure in banking, insurance and securities in the two countries.
As of the end of December last year, loans from Taiwan’s 38 banks to Russia put their credit risk exposure at a combined NT$5.285 billion (US$189.79 million), while their credit exposure in Ukraine was NT$6 million, the Banking Bureau said.
Taiwanese insurers had no risk exposure in Ukraine, but their risk exposure in Russia was as high as NT$147 billion, the bureau said.
Taiwan has no risk exposure to Russian or Ukrainian securities, but private investors might have risk exposure because of securities and futures acquired through domestic and overseas investment funds, the Securities and Futures Bureau said.
The securities bureau estimated that the risk faced by private investors using domestic funds to invest in Russia totaled NT$21.4 billion, while the risk faced by those using overseas funds was NT$35.4 billion.
The risk exposure for private investors using domestic funds to invest in Ukraine was NT$5.08 billion, while the risk faced by those using overseas funds was NT$15 billion.
Overall, Taiwan had a financial risk of NT$209.085 billion in Russia and NT$20.086 billion in Ukraine, the commission said.
BACK IN THE NEIGHBORHOOD: The planned transit by the ‘Baden-Wuerttemberg’ and the ‘Frankfurt am Main’ would be the German Navy’s first passage since 2002 Two German warships are set to pass through the Taiwan Strait in the middle of this month, becoming the first German naval vessels to do so in 22 years, Der Spiegel reported on Saturday. Reuters last month reported that the warships, the frigate Baden-Wuerttemberg and the replenishment ship Frankfurt am Main, were awaiting orders from Berlin to sail the Strait, prompting a rebuke to Germany from Beijing. Der Spiegel cited unspecified sources as saying Beijing would not be formally notified of the German ships’ passage to emphasize that Berlin views the trip as normal. The German Federal Ministry of Defense declined to comment. While
‘UPHOLDING PEACE’: Taiwan’s foreign minister thanked the US Congress for using a ‘creative and effective way’ to deter Chinese military aggression toward the nation The US House of Representatives on Monday passed the Taiwan Conflict Deterrence Act, aimed at deterring Chinese aggression toward Taiwan by threatening to publish information about Chinese Communist Party (CCP) officials’ “illicit” financial assets if Beijing were to attack. The act would also “restrict financial services for certain immediate family of such officials,” the text of the legislation says. The bill was introduced in January last year by US representatives French Hill and Brad Sherman. After remarks from several members, it passed unanimously. “If China chooses to attack the free people of Taiwan, [the bill] requires the Treasury secretary to publish the illicit
A senior US military official yesterday warned his Chinese counterpart against Beijing’s “dangerous” moves in the South China Sea during the first talks of their kind between the commanders. Washington and Beijing remain at odds on issues from trade to the status of Taiwan and China’s increasingly assertive approach in disputed maritime regions, but they have sought to re-establish regular military-to-military talks in a bid to prevent flashpoint disputes from spinning out of control. Samuel Paparo, commander of the US Indo-Pacific Command, and Wu Yanan (吳亞男), head of the People’s Liberation Army (PLA) Southern Theater Command, talked via videoconference. Paparo “underscored the importance
The US House of Representatives yesterday unanimously passed the Taiwan Conflict Deterrence Act, which aims to disincentivize Chinese aggression toward Taiwan by cutting Chinese leaders and their family members off from the US financial system if Beijing acts against Taiwan. The bipartisan bill, which would also publish the assets of top Chinese leaders, was cosponsored by Republican US Representative French Hill, Democratic US Representative Brad Sherman and seven others. If the US president determines that a threat against Taiwan exists, the bill would require the US Department of the Treasury to report to Congress on funds held by certain members of the
RSS