Taiwan banks' exposure to China balloons, regulators warn of yuan risks
Published on Mar 20, 2014 8:01 PM
TAIPEI (REUTERS) - Taiwan's central bank said on Thursday that local banks had the equivalent of US$64.92 billion (S$82.18 billion) in exposure to Chinese loans, investments and interbank deposits as of end-December, leaving them more exposed to China than to any other country.
On a quarterly basis, the exposure increased 27.3 per cent in the fourth quarter from the third, the central bank said.
Earlier in the day, the Commercial Times newspaper reported that the island's financial regulators are checking seven banks to see if they properly advised clients about potential risks of currency investments after receiving complaints about losses related to the recent sharp fall in the Chinese yuan.
The Financial Supervisory Commission (FSC) had many complaints from investors about losses on yuan and other currency products, including from clients of banking units of Fubon Financial, Chinatrust Financial, Sinopac Financial and several others, the paper said, without citing sources.
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