Taiwan Orders Takeover of 35 Troubled Financial Institutions

By Ray ZHANG, CND, 17 September 2001

[CND, 09/17/01] Thirty-five troubled financial institutions have been taken over by ten banks in Taiwan as requested by its Finance Ministry, AFP reported.

According to the ministry’s statement, those 35 credit unions and cooperatives, which mostly operate in central and southern Taiwan and account for only one percent of the island’s banking system, are expected to continue normal operations after the takeover.

The government will provide compensation to the ten banks next month for taking over the troubled businesses, the ministry said. The moves underscored the government’s efforts to overhaul Taiwan’s banking system which has been plagued by mounting non-performing loans.