Tawian regulator takes charge of failing banks

0 Comments | AFP, January, 2007

TAIPEI (AFP) — Taiwan's financial regulator has taken charge of two failing private banks in quick succession, an unprecedented move intended to stabilise them. The Financial Supervisory Commission took over The Chinese Bank on Saturday as depositors lost confidence in the indebted company and rushed to withdraw their money.

The commission said late Friday it had also taken over the loss-making Enterprise Bank of Hualien, which has more liabilities than assets. Customers queued for hours Friday at The Chinese Bank's branches across the island to withdraw their money. A bank official said depositors withdrew at least 1.4 billion Taiwan dollars (43 million US) on Friday. They did so after two units from The Chinese Bank's parent company, the conglomerate Rebar group, filed...