07.18.2001
Bank SinoPac to form FHC

• Development: Bank SinoPac plans to apply for a license to become a Financial Holding Company in Nov. The license allows for banking services, leasing, securities, and investment consulting.

• Analysis: This move is in line with our expectations as management of the family controlled bank would rather consolidate the group’s businesses under one roof.

• Primasia View: We doubt the formation of an FHC will help control the bank’s deteriorating asset quality and expect only a marginal increase in the firm’s competitiveness in the otherwise overcrowded financial services sector.

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