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Bank Industry Risk Analysis: Taiwan Jun 02
Standard & Poors, June 2002
Abstract
The industry risk for the banking sector of Taiwan (Republic of China)(AA/Negative/A-1+) appears satisfactory but the outlook remains negative due to increasing structural challenges. The sector is supported by its adequate aggregate balance sheet, particularly in terms of liquidity and capitalization. In addition, a degree of implied government support for big policy banks, which dominate the system, remains a favorable factor. These strengths, however, are partially offset by a recent slowing of economic growth, heightened competition, and increasingly poor financial measures, with the latter mainly due to deteriorating asset quality. The risk profiles of Taiwan's banks accordingly remain mixed. The leading 13 domestic banks, which control two-thirds of the island's banking assets, mostly have adequate capacity to meet their financial...
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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