Two Taiwan banks to merge
( 2001-05-11 14:06) (8)
Taiwan's United World Chinese Commercial Bank and Taishin International Bank are expected to merge in April next year, a report said Friday.
Taishin would acquire a 30 percent stake of United World as part of the merger and would control the board of the new company, the Economic Daily News quoted unnamed sources as saying. United World would name its chairman as the head of the new bank.
Other details were yet to be finalised, it added.
Both banks declined to confirm the report.
Meanwhile, "Finance Minister" Yen Ching-chang said more bank merger plans would be announced by the end of the month.
The "ministry" has said the island's financial market can support only 10 banks, as opposed to current 53.
The government is encouraging mergers and acquisitions among financial institutions amidst growing non-performing loans (NPLs).
Taiwanese banks' overall NPL ratio reached 5.3 percent by the end of December, up from 4.9 percent a year earlier.
A total of 773.5 billion Taiwan dollars (US$23.5 billion) of NPLs were recorded amongst domestic banks at the end of last year.
The sum excluded grassroots financial institutions, which are believed to have some of the worst problem loans.
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