Taiwan Cooperative Bank Plans to Become a Financial Holding Firm

Taipei, March 7, 2011 (CENS)--With the backing of the Ministry of Finance (MOF), Taiwan Cooperative Bank plans to apply for conversion into a financial holding firm in November, becoming the 16th such firm on the island.

Excluding its insurance and investment trust subsidiaries, Taiwan Cooperative Banks boasts assets of near NT$3 trillion, which will rank fourth to fifth place among domestic financial firms.

Taiwan Cooperative Bank has been actively diversifying its operation in recent years, such as via the establishment of an insurance firm in a joint venture with BNP Paribas Group of France. The FSC, however, turned down its application for spinning off its securities operation into a subsidiary, due to the concern for its difficulty in managing the sprawling business network. The FSC, instead, suggested the bank to study the feasibility of conversion into a financial holding company.

Management of the bank has reached a conclusion to make the conversion and has won the support of the MOF for the decision. The bank will sent the plan to the shareholders' meeting in June for approval before applying with the FSC, scheduled in November.

Taiwan Cooperative Bank boasts paid-in capital of NT$60.3 billion, higher than the threshold of NT$60 billion for the establishment of financial holding firm. With less than one year of history, its insurance arm, BNP Paribas Assurance TCB Life Insurance, has raked in premium income of NT$40 billion and ranks fifth place in premium income for first-year policies.