03.08.2001
New rules on loans to single business groups

• The Ministry of Finance has set a new rule limiting a bank's total loans to a single business group, including affiliates and subsidiaries, to 40% of the bank's net worth. Penalties for infringement will range from NT$2m to NT$10m.

• Previously, the limit had been set at 40% to a single customer. The limit for uncollateralized loans to a single business group will stand at 15% of the bank's net worth. The new rules, designed to strengthen banks' capital structure, are to come into effect within 15 days.

• The new regulations also relax controls on banks' investments in non-financial businesses, as long as the bank in question has a capital adequacy ratio of 9%.

IrmakSurenkok@Primasia.com +886-[0]2-2547-8873