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2412 - Chunghwa Telecom Co News Story

TWD114.5 0.5  0.4%

Last Trade - 6:30am

Large Cap
Market Cap £22.65bn
Enterprise Value £22.99bn
Revenue £5.32bn
Position in Universe 74th / 6093

UPDATE 1-Taiwan issues island's first virtual bank licences

Tue 30th July, 2019 10:17am
(Adds background)
    TAIPEI, July 30 (Reuters) - Taiwan issued its first virtual
banking licences to three consortiums consisting of Taiwan and
Japanese investors, its financial authorities said on Tuesday,
following moves by regulators in other Asian markets to issue
such licences.
    Asia's internet firms are challenging the region's
traditional banks for consumer finances, hoping to increase
competition and drive innovation in their markets, while
non-banking companies are keen to challenge traditional banks by
leveraging their technology and user databases.*:nL3N21R10B
    The island's Financial Supervisory Commission said the 
digital banking licences were granted to LINE Financial Taiwan,
which was led by Japanese app operator LINE Group  3938.T , and 
Next Commercial Bank, led by Taiwan telecom operator Chunghwa
Telecom  2412.TW .
    Another licence was granted to Rakuten International
Commercial Bank, which was operated by Japanese e-commerce firm
Rakuten Inc  4755.T  and Taiwan's IBF Financial Holdings
 2889.TW .
    The commission said it has no plan to issue more virtual
bank licences at the moment.
    Across the strait in Hong Kong, the financial hub gave out
eight new online-only banking licences earlier this year to
groups including affiliates of Alibaba Group Holding Ltd
 BABA.N  and a consortium led by Standard Chartered Plc
 STAN.L .*:nL3N22L30U*:nL3N21E28U 
    Singapore's central bank said in June it would issue up to
five digital bank licences, and Reuters reported previously,
quoting sources, that ride-hailing company Grab was considering
    Regulators in Thailand and Malaysia are also considering
digital banking licences, and Korea's FSC, last week, allowed
internet company Kakao Corp  035720.KS  to increase its stake in
Kakao bank, one of two online-only banks in the country.
    Incumbent banks need to respond quickly to the new
competition, say analysts. Consultancy McKinsey estimates that
if digital banks gain significant market share and scale
quickly, Asian banks' average return on equity, a measure of
profitability, could drop to as low as 6.4% by 2023, from 10.1%
last year.

 (Reporting By Emily Chan and Yimou Lee; editing by Gopakumar
 ((; +886-909-894-919; Reuters
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