By: Tsai Yi-chu and Lilian Wu
Taipei, Feb. 15 (CNA) Banks and life insurers in Taiwan will be asked to conduct stress tests for risks related to fluctuations of the Chinese yuan, which rose sharply against the U.S. dollar on Monday, the Financial Supervisory Commission (FSC) has announced.
FSC Chairwoman Wang Li-ling (王儷玲) said Monday that the regulator will ask banks and life insurance operators to conduct sensitivity analysis of Chinese yuan exchange rates to determine how their businesses would be affected by big fluctuations in the value of the Chinese currency.
The Chinese yuan rose 1.23 percent against the U.S. dollar on Monday in the first day of trading after the long Lunar New Year break, buoyed by the dollar’s recent weakness and a stronger central bank midpoint rate. [FULL STORY]