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Article: Business restrictions may boost bills finance consolidation.
- Article from:
- The Taiwan Economic News
- Article date:
- October 27, 2009
CopyrightCOPYRIGHT 2009 China Economic News Services. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Because of high liquidity risk in Taiwan's bills finance industry, the Financial Supervisory Commission (FSC) plans to cut the scale of the guarantee business and lower the ceiling on liabilities for domestic bills finance firms. This move may accelerate consolidation in the industry.
Liabilities in the bills finance industry have reached dangerously high levels following the outbreak last year of the global financial tsunami, a situation which is made more serious by the exclusion of bills finance firms from the central deposit insurance program.
The FSC plans to ask bills finance companies to reduce their liabilities and cap their guarantee business at ...