Official caution

Article Abstract:

Taiwan wants to become the centre of Asia's banking industry but this is hampered by regulations which restrict banks opening foreign branches. Taiwanese overseas investors rarely go to Taiwanese banks for finance. Twenty per cent go to local host banks and 10% go to other foreign banks. There is considerable scope for Taiwanese banks to enter this market but Taipei is reluctant to allow banks to expand abroad, especially into China and Hong Kong, because it might result in capital leaving Taiwan to strengthen the Chinese economy. Many banks opened branches in Hong Kong prior to the handover.

Economic policy

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Awaiting a shake-out

Article Abstract:

The Taiwan banking system has avoided any severe financial crises, but the sector may be set for consolidation. Taiwan's conservative policies distance the banking system from external pressures and the central bank has managed successfully to isolate domestic incidents involving individual banks. The credit cooperatives are the weakest sector of the banking system, but some of the stronger cooperatives are becoming commercial banks. The trend towards privatization may lead to consolidation, due to overcrowding in the banking sector and to competition from other sectors.

Cover Story

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Banking support

Article Abstract:

Canadia Bank Pres Pung Kheav Se has played a key role in making the institution the largest private bank in Cambodia. It has benefited from its links with Hun Sen, the country's Second Prime Minister, and from the fact that Pung is secretary-general of Cambodia's chamber of commerce. Many of the Chinese countries establishing a presence in Cambodia are using Canadia Bank's services, and local investors have also been impressed by the public support shown by Hun Sen for Canadia.

Commercial Banking, Private Deposit Money Banks, Management, Company Profile, Private depositories, Canadia Bank

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