Taiwan's FSC to Help 8 FHCs to Explore Asian Market

Taiwan's Financial Supervisory Commission (FSC) recently chose  eight financial holding companies (FHCs) to whom assistance will be offered to explore the financial market in Asia, including Taiwan Financial, Mega Financial, Cathay Financial, Fubon Financial, CTBC, First Financial, Yuanta Financial, and China Development Financial Holding Co.

M. C. Tseng, chairman of FSC, indicates that some emerging Asian countries have recently further liberalized financial markets to allow foreign financial institutions to set up branches, signaling opportunity for Taiwanese FHCs to further explore such markets.

While issuing limited licenses, Cambodia, Myanmar, Vietnam, etc. will allow foreign financial institutions to establish local footholds, an opportunity the FSC hopes Taiwanese institutions can tap to expand operations.

Tseng says that the FSC will do what it can to help domestic FSCs obtain such licenses but emphasizes the FHCs with plans to enter the markets must be adequately large and globalized.

Profits gained by offshore banking units of Taiwanese domestic banks account for about 40% of total profits and the percentage is expected to rise to over 50% within one or two years, Tseng adds.

Assets & Profits of the 8 Chosen FHCs          Unit: NT$B.
FHC	Assets in 2013	Profits in first 10 months of 2014
Taiwan	4,700	6.4
Cathay	6,000	46.9
Fubon	4,500	56.5
Mega	3,100	26.0
CTBC	2,400	38.0
First	2,200	12.6
Yuanta	800	15.1
China Development	600	9.1

Source: FSC