Taiwan Auctions Debt-ridden Chinfon Commercial Bank

Published: 27-Oct-2009

Fubon to pay T$2.53 billion to purchase branches in Vietnam, and Taishin to pay T$4.1 billion to buy credit card business

In an attempt to consolidate the fragmented banking industry, the Taiwan government has auctioned the debt-ridden Chinfon Commercial Bank to Fubon Financial and other local lenders – reported Reuters.

In a statement, the Central Deposit Insurance Corporation (CDIC), the institution in Taiwan exclusively in charge of managing the deposit insurance system and serves as an integral part of the nation's financial safety net, said that Bank of Taiwan would be commissioned to manage the bank.

An official at CDIC said that the government will pay T$19.3 billion to Yuanta Financial and T$19 billion to Far Eastern Bank to acquire Chinfon's local assets and debts. He added that Fubon will pay the government T$2.53 billion to purchase Chinfon's branches in Vietnam, and Taishin Financial will pay T$4.1 billion to buy Chinfon's credit card business, reported the news agency.

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