06.28.2001
Legislative Yuan passes financial reforms

• Development: Yesterday, the Legislative Yuan passed the remaining 4 laws on financial reforms. Financial Holding Company (FHC) Law is expected to speed up consolidation for banks, insurance and securities companies.

• Analysis: Forming the FHC will be a complicated process. We expect it to take at least 9 months to arrange, and any advantage is not likely to be seen in the short term.

• Primasia View: We remain concerned over the profitability of banks due to increasing NPLs.

WilliamFong@Primasia.com +886-[0]2-2547-8864