Date: Nov 28, 2016
By: Ted Chen / Staff reporter
The combined earnings of the nation’s financial companies are likely to contract this year amid the nation’s slowing economic growth and a decline in private investment, ending a three-year streak of annual gains, according to data released by the Financial Supervisory Commission (FSC) on Thursday.
The aggregate earnings of domestic banks, credit cooperatives and Chunghwa Post Co (中華郵政) in the first 10 months of the year dropped NT$18.4 billion (US$576.04 million) from the same period last year to NT$297.6 billion, commission statistics showed.
Post offices operated by Chunghwa Post provide not only mail delivery, but also banking services.
The commission attributed the decline to a narrowing net interest margin (NIM) following the central bank’s interest rate cuts, and rising provision requirements by financial authorities against default risks, as well as a massive US$180 million fine imposed on Mega International Commercial Bank (兆豐銀行) for violating US money laundering regulations. [FULL STORY]