Abstracts » Business, international

The new kids on the block

Article Abstract:

The Taiwanesebanking industry has great prospects for growth after the slackening of controls over it by the government. Unlike other banks in the region, Taiwanesebanks are not saddled by heavy debts resulting from unbridled borrrowings by real estate developers and corporate investors. Its noninvolvement in property and stock market speculations has also strengthened its ability to provide moreservices and increase its client coverage. Since 1991, the country's Finance Ministry has granted licenses to 17 new banks, bringing to 31 the total number of local banks on the island.

Commercial Banks, Industry Overview, Services

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Everybody out: scandals prompt runs on two Taiwanese lenders

Article Abstract:

Taiwan's stockmarket plunged 4.8% on Aug 5, 1995, following announcements of banking scandals at Changhua Fourth Cooperative Bank and International Bills Finance Corp (IBFC). At Changhua, the general manager embezzled $295 million, three times the bank's net worth, leading to a huge bank run before the Ministry of Finance closed the co-op on Aug 3. At IBFC, a clerk issued about $3 billion in fake commercial paper. Strong criticism of the government's general oversight and its handling of both cases followed.

Banking Institutions, Depository Credit Intermediation, DEPOSITORY INSTITUTIONS, Banks (Finance), Bank fraud

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On hold

Article Abstract:

Taiwan's economy seems to be slowing down although it continues to grow. Growth in gross national product in 1993 has been 6.15% while the government intended a 7% rate. Capital formation has declined to 13% of 1992's rate which was 19.5% of the 1991 rate. The central bank has tried to boost confidence in moves interpreted as support for the Kuomintang's electoral campaign. The economics ministry has also tried to help the stock market.

Foreign investments

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