BOT Raises Capital to Become Taiwan's Largest Bank in Capitalization
2014/11/06 | By Judy LiBank of Taiwan, fully government owned, has recently been approved by Financial Supervisory Commission (FSC) to raise capital by NT$25 billion (US$833.33 million) to become Taiwan's largest bank in terms of capitalization at NT$95 billion (US$3.17 billion).
The raising of capital enables the BOT to establish a subsidiary in Shanghai, China that calls for about two billion renminbi.
Seeing the potential market in China, BOT decided to raise capital as early as in 2012, but did not until the end of September 2014 turn in the application, which FSC ratified in mid-October.
BOT has in recent years actively explored the loans market in China, having led Taiwan's syndicated loan market over the last two years, as well as being designated by the government to administer the labor retirement fund of NT$600 billion (US$20 billion), which yields return on investment as high as 13%.
The bank has 169 branches islandwide with total assets of NT$4.34 trillion (US$144.67 billion), net worth of NT$250.147 billion (US$8.34 billion), loans portfolio, as of the end of June 2014, of NT$2.3 trillion (US$76.67 billion), deposits of NT$3.34 trillion (US$111.33 billion). (JL)