FSC Penalizes Bank SinoPac and Taishing Bank

Taipei, Dec. 23, 2005 (CENS)--The Financial Supervisory Commission penalized both Bank SinoPac and Taishin Bank yesterday, mainly for violating regulations pertaining to "purchase of accounts receivable" and "excessive forex position." Both have been forced to suspend operations related to the violations for half a year. Taishin Bank has also been fined NT$10 million, in addition to receiving a ban on applications for new forex businesses for six months.

Chen Hai-chou, general manager of Taishin Financial Holding, noted that executives responsible for the mistake have been reprimanded by the bank, and that Taishin has also revised internal control systems to prevent the reoccurrence of holding excessive positions in the future.

Ho Shou-chuan, who will take over the chairmanship of SinoPac soon, pointed out that the case it has been penalized for occurred in 2002, and that loans related to the case have already been collected. In the future, the bank will follow the regulations of the Bureau of Monetary Affairs for sales of accounts receivable. Therefore, the International Bank of Taipei, which will be incorporated as a part SinoPac, will still be able to undertake such business. The suspension of the business by SinoPac for half a year will not affect the profit level of SinoPac Financial Holding after the merger of the two banks.