Taiwan's first asset management company (AMC) is expected to apply to authorities for a company license with a registered capitalization of NT$25 billion before the end of March, the Commercial Times reported yesterday.
The new AMC -- officially named Taiwan Asset Management Co (TAMC,
The company's founding shareholders are 35 domestic banks. It is scheduled to complete its incorporation registration with the Ministry of Economic Affairs (
An AMC disposes collateral held by domestic banks generated from NT$1 trillion-plus non-performing loans.
Lin Cheng-kuo (
According to Lin, the company has currently raised NT$15 billion in capital from its 35 member banks. In the next stage, another NT$10 billion would be raised from foreign investors and domestic non-financial institutions. The new company is scheduled to operate in the second half of this year, with NT$25 billion of capital.
"The first AMC is expected to fully develop its AMC function in one to two years," said Lin at the founders' meeting.
"After the company is established, it will dispose of problematic assets held by member banks at an early stage. But it will also accept problematic assets from non-member banks if we are asked to do so," said Lin.
Lin added that before it applies for a corporate license next month, there would be at least five more banks participating as member banks, which would mean the number of member banks would exceed 40.
The board of directors will consist of nine to 15 members. Currently, nine directors have been named, and six more directorships have been left for future shareholders, including foreign investors and non-financial institutions, according to Lin.
"A number of foreign and domestic companies have expressed interest in participating in the new AMC. After the operation plan is completed, we will invite these potential investors," said Lin.
"According to Article 15 of the Financial Institutions Law, the losses after banks sell their problematic assets to AMCs, can be written off in the next five years," said Lin. "Through auctioning by the AMCs and financial assets service companies (FASCs), the long period time required by a court's auctioning process could be shortened. The AMC will provide an alternative for the banking industry when disposing of problematic assets."
Since the business of an AMC is a new field for domestic banks, how TAMC is going to compete with foreign players has become a controversial issue.
"First, I would like to stress that establishing an AMC is not like building a space shuttle -- it does not require such high technology," said Lin. "We do not have to see the task as extremely difficult. Actually it's quite simple to run an AMC if it operates efficiently on disposing problematic assets from domestic banks. If we apply new concepts and a positive attitude, and manage it with flexibility, I believe we will complete the task. We just have to be self-confident."
Lin said that as the first domestic AMC, he expects to become the most successful AMC. "We will never lose to our competitors," vowed Lin in the meeting.
"However, since our personnel require some training and practice at this early stage, we anticipate that TAMC will be up to full speed in one to two years after setting up. Some patience is required at the beginning," stressed Lin.
‘CROWN JEWEL’: Washington ‘can delay and deter’ Chinese President Xi Jinping’s plans for Taiwan, but it is ‘a very delicate situation there,’ the secretary of state said US President Donald Trump is opposed to any change to Taiwan’s “status quo” by force or extortion and would maintain that policy, US Secretary of State Marco Rubio told the Hugh Hewitt Show host on Wednesday. The US’ policy is to maintain Taiwan’s “status quo” and to oppose any changes in the situation by force or extortion, Rubio said. Hewitt asked Rubio about the significance of Trump earlier this month speaking with Taiwan Semiconductor Manufacturing Co (台積電) chairman C.C. Wei (魏哲家) at the White House, a meeting that Hewitt described as a “big deal.” Asked whether the meeting was an indication of the
‘RELATIVELY STRONG LANGUAGE’: An expert said the state department has not softened its language on China and was ‘probably a little more Taiwan supportive’ China’s latest drills near Taiwan on Monday were “brazen and irresponsible threats,” a US Department of State spokesperson said on Tuesday, while reiterating Washington’s decades-long support of Taipei. “China cannot credibly claim to be a ‘force for stability in a turbulent world’ while issuing brazen and irresponsible threats toward Taiwan,” the unnamed spokesperson said in an e-mailed response to media queries. Washington’s enduring commitment to Taiwan will continue as it has for 45 years and the US “will continue to support Taiwan in the face of China’s military, economic, informational and diplomatic pressure campaign,” the e-mail said. “Alongside our international partners, we firmly
KAOHSIUNG CEREMONY: The contract chipmaker is planning to build 5 fabs in the southern city to gradually expand its 2-nanometer chip capacity Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, yesterday confirmed that it plans to hold a ceremony on March 31 to unveil a capacity expansion plan for its most advanced 2-nanometer chips in Kaohsiung, demonstrating its commitment to further investment at home. The ceremony is to be hosted by TSMC cochief operating officer Y.P. Chyn (秦永沛). It did not disclose whether Premier Cho Jung-tai (卓榮泰) and high-ranking government officials would attend the ceremony. More details are to be released next week, it said. The chipmaker’s latest move came after its announcement earlier this month of an additional US$100 billion
PERMIT REVOKED: The influencer at a news conference said the National Immigration Agency was infringing on human rights and persecuting Chinese spouses Chinese influencer “Yaya in Taiwan” (亞亞在台灣) yesterday evening voluntarily left Taiwan, despite saying yesterday morning that she had “no intention” of leaving after her residence permit was revoked over her comments on Taiwan being “unified” with China by military force. The Ministry of the Interior yesterday had said that it could forcibly deport the influencer at midnight, but was considering taking a more flexible approach and beginning procedures this morning. The influencer, whose given name is Liu Zhenya (劉振亞), departed on a 8:45pm flight from Taipei International Airport (Songshan airport) to Fuzhou, China. Liu held a news conference at the airport at 7pm,
RSS