Taiwan's top finance regulator says to encourage local bank consolidation

Mega Financial Holding Co

27/10/2016 09:45

TAIPEI, Oct 27 (Reuters) - Taiwan's newly-appointed top 
financial regulator said on Thursday he would encourage 
consolidation in the island's over-crowded banking industry. 
    Taiwanese banks' return on assets (ROA) has been among the 
lowest in Asia for years, hurt by increased competition and 
stiff price cuts. Efforts by the government to push for 
consolidation has failed previously. 
     "Pushing for the consolidation is not something we just 
talk about. We should figure out some measures to encourage 
banks to do so," Chairman Lee Ruey-tsang of the Financial 
Supervisory Commission told a news conference after he took 
office earlier in the day. He did not elaborate on how he would 
encourage consolidation. 
    Lee has said he would work to tackle a money laundering 
scandal that has engulfed the island's top financial officials 
and led to the resignation of his predecessor.  
    Lee told Reuters he would prioritise an investigation into 
whether Mega Financial Holding  2886.TW  had breached United 
States money laundering rules at its New York banking branch.   
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 (Reporting by Faith Hung; Editing by Jacqueline Wong) 
 ((faith.hung@thomsonreuters.com; 8862 2500 4893; Reuters 
Messaging: faith.hung.thomsonreuters.com@thomsonreuters.net)) 
 
Keywords: TAIWAN FINANCIALREGULATOR/