Tuesday, July 03, 2007


Standard Chartered to buy more Taiwanese Banks?



Chief Executive Officer of Standard Chartered, Peter Sands, has announced that the bank would not rule out buying more Taiwanese banks. The company, which currently generates two thirds of its profits from Asia, hopes that the acquisition of other Taiwanese banks would boost its network across the island.

In September the bank secured its first overseas takeover of Taiwanese lender, Hsinchu International Bank, in the NT$40.5 billion offer. This takeover increased the Standard Chartered outlets in Taiwan from a mere three to 86, nine of which are located in Taipei.

Reporters were informed by Sands that another acquisition in Taiwan was not out of the question however, “not and immediate priority”.

Taiwan’s government is encouraging consolidation in the industry as almost a third of its native banks are losing money.

In April New York-based Citigroup agreed to purchase the Bank of Overseas Chinese for NT$14.1 billion , increasing its branches from 10 to 66.

Most recently ABN AMRO agreed to receive NT$6.9 billion from the government in exchange for the failed Taitung Business Bank which had, until June, been under state oversight.

Can Standard Chartered use their experience, expertise and established global network to help reform Taiwan’s banking network should they continue to buy out local banks?