CONTAINING RISKS: The commission has a stricter bad-debt provisioning ratio for loans to the Chinese market, amid concern over financial contagion from China

Taipei Times
Date: Dec 20, 2018
By: Kao Shih-ching  /  Staff reporter

Financial Supervisory Commission (FSC) Chairman Wellington Koo (顧立雄) yesterday said that while the commission has detected signs pointing to potential financial risk in China, it has tightened its regulations to limit local lenders’ exposure.

Taiwan Research Institute (台灣綜合研究院) founder Liu Tai-ying (劉泰英) on Tuesday said that Taiwan would next year be threatened by contagion risk from a financial crisis originating in China, which could drag the TAIEX to as low as 6,000 points.

“Although the potential financial crisis in China is concerning, given that Beijing has implemented several new measures to stabilize the market, we do not see any storm ahead,” Koo told the Taipei Times on the sidelines of a meeting of the Legislative Yuan’s Finance Committee.

However, the commission has asked any lender whose exposure to China exceeded 80 percent of its net worth to pay more attention to their credit extensions, Koo said.    [FULL  STORY]