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Bank Industry Risk Analysis: Taiwan Dec 00
Standard & Poors, Dec 2000
Abstract
The industry risk for Taiwan's banking sector is higher than average by global standards. The sector remains over-banked and this has led to tight profit margins and an over-extension of loans to risky borrowers. Taiwan's banks are currently stressed by historically high levels of gross problematic assets (defined as the sum of nonperforming, restructured, and rescheduled loans, loans 90 days past due, and foreclosed assets), estimated at about 10% of gross loans in the second half of 2000. Nonetheless, Taiwan's difficulties are not of the same magnitude as those that caused the crises suffered by other Asian systems in 1997-1998 and are unlikely to result in a similar crisis, provided the government ensures the orderly resolution of troubled financial institutions....
Companies mentioned in this report are: Taiwan (Republic of China) (Unsolicited Ratings),Chiao Tung Bank,Bank of Taiwan,Mega International Commercial Bank Co. Ltd.,Chang Hwa Commercial Bank Ltd.,Hua Nan Commercial Bank Ltd.,China Development Industrial Bank,Farmers Bank of China,Taipei Fubon Commercial Bank Co. Ltd.,Bank of Kaohsiung
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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