- General
- Business
- Moodys's say
- Economy
- Bank and Finance
- Politics
- Energy
- World
- Environment
- Entertainmentt
- Sport
- Agro and Food
- Lifestyle
Moody’s says Taiwan banks’ operating environment challenging
By k on December 16, 2009
Singapore, December 16, 2009 -- Moody's Investors Service says in a new report that the Taiwanese banking system faces a challenging operating and regulatory environment, but there are also signs of improvement. The report, "Banking System Profile for Taiwan," further notes that systemic support is expected to be extended to Taiwanese banks, should they need it, as a stable banking system is essential to the Taiwan economy. "The Taiwan banking system has since 2000 gradually consolidated from 53 domestic banks to 37, but the market landscape has changed little and the very keen level of competition has not abated," says Christine Kuo, a Moody's VP/Senior Analyst and author of the report. "While Taiwan's economic growth has been robust in most years, it is trending lower and vulnerable to external developments. Moreover, the efficiency of its legal system is only assessed as fair and its control of corruption has room for improvement. These conditions have negatively affected the business growth and efficiency of bank operations," adds Kuo. Nonetheless, the regulatory and supervisory environment for Taiwanese banks is improving. Most of its regulatory standards are in line with international practices, while its enforcement is adequate. Areas that could be further enhanced include a more stringent classification of impaired credit, full adoption of international accounting standards, and improved corporate governance. Moody's also notes that the chairpersons and commissioners of the Financial Supervisory Commission have changed several times since its establishment in 2004. These frequent changes suggest the organization is subject to certain degree of political influence. A reduction of political interference would enable the regulator to formulate and implement a more consistent and cohesive financial sector policy over time. Moody's assesses Taiwan as a high-support country, based on the importance of the banking system to the economy and the absence of any history of bank deposit defaults. Additionally, in Moody's view, Taiwan's Aa3-rated government is capable of supporting the banking system, if needed. Moody's Banking System Profile for Taiwan is a first for that economy and forms part of a new series of reports on banking systems throughout the world. These profiles are designed to complement the rating agency's Banking System Outlook reports by serving as descriptive reference guides to key structural factors reflected in Moody's bank credit ratings.
Related posts:
- Moody’s takes multiple actions on three Taiwan financial institutions Taipei, June 18, 2009 -- Moody's Investors Service has...
- BoT confident of Thai banks strength, despite possible Moody’s downgrade BANGKOK, May 27 (TNA) – Thailand’s commercial banks still...
- Moody’s rates Thai banks’ credibility “stabilized” BANGKOK, 26 January 2010 (NNT) – A leading global credit...
- Moody’s sees negative industry outlook for Australia/NZ banks Singapore, June 23, 2009 -- Moody's Investors Service says that...
- Moody’s says Indonesia banking system outlook negative Singapore, August 11, 2009 -- Moody's Investors Service says that...
Related posts brought to you by Yet Another Related Posts Plugin.
Readers Comments
Business News »
Thai stock indexes to fluctuate in narrow range next week
March 14, 2010
BANGKOK, 14 March 2010 (NNT) – Thai stock indexes were expected to swing in a narrow range next week as a result of the domestic political affair, according to the Kasikorn Research center (KResearch). KResearch predicted the movement of Thai stock indexes from 15 to 19 March, reporting that the indexes would slightly [...]
Bank And Finance »
Security, cash reserves of banks well-prepared
March 12, 2010
BANGKOK, 12 March 2010 (NNT) – Commercial Banks have prepared security measures and adequate cash reserves upon the mass demonstration of the anti-government United Front of Democracy Against Dictatorship (UDD).
Kasikorn Bank CEO Banthoon Lamsam stated that cash withdrawal of customers at present was normal, and the bank would not increase the amount of cash reserves [...]
General News »
Red Shirt ‘column’ moves to army unit to await PM’s answer on House dissolution
March 15, 2010

BANGKOK, March 15 (TNA) - The red-clad anti-government United Front for Democracy against Dictatorship (UDD) core group began moving from its main protest venue at Phan Fah Lilat Bridge on Bangkok’s Rajdamnoen Avenue to wait for Prime Minister Abhisit Vejjajiva’s response to their demand for a House dissolution at the government’s temporary safe house at [...]
Economy »
Current economic uptrend as a result of higher employment rate in Q1
March 14, 2010
BANGKOK, 14 March 2010 (NNT) – Thailand sees an economic uptrend due to higher employment rates in the first quarter of this year.
Speaking in his weekly talk show, “Confidence with Thailand with Prime Minister Abhisit”, the Prime Minister stated that the rate of employment during this period was on the rise or higher, compared to [...]
Energy »
More energy needed: more solutions wanted
March 10, 2010
BANGKOK, 10 March 2010 (NNT) - The Ministry of Energy hosts the ‘Fuel Options for Electricity Generation’ seminar to discuss possible energy alternatives for Thailand
Minister of Energy, Dr Wannarat Channukul, presided over the opening ceremony advising public and private sectors to not emphasize development on a certain alternative energy source too much. Disruption of energy [...]
Politics »
PM turns down UDD´s request to dissolve house
March 15, 2010

BANGKOK, 15 March 2010 (NNT) – Prime Minister Abhisit Vejjajiva assured that House dissolution will not take place by Monday noon, in response to the request made by the anti-government United Front of Democracy Against Dictatorship (UDD).
Speaking at the 11th Infantry Regiment, the prime minister gave a press conference to elaborate his refusal to comply [...]