Taiwanese financial holding companies' exposure to Credit Suisse NT$155 billion
台資金融控股公司對瑞信有新台幣1550億的資金缺口
| Among 14 companies, none hold high-risk AT1 bonds, holdings each account for less than 1% of portfolios
TAIPEI (Taiwan News) — Taiwan's financial regulator confirmed the domestic banking sector's exposure to Credit Suisse is limited and no banks hold high-risk AT1 bonds, and 14 financial institutions are currently investing in Credit Suisse, the media reported. Last week, the embattled Swiss lender Credit Suisse was taken over by UBS and Swiss National Bank. As part of the deal, Swiss authorities directed the write-off of "additional tier 1 (AT1) bonds," a type of high-risk, high-yield securities. In Taiwan, the total amount of exposure to Credit Suisse is estimated to be NT$155 billion (US$5.08 billion), including NT$47 billion in the banking sector and NT$108 in the insurance sector, said Huang Tien-mu (黃天牧), the head of Financial Supervisory Commission on Monday (March 20). The exposure among local banks and insurers would be 0.7% to 0.01% of their portfolio, according to a cnyes report. Among those facing costs if their Credit Suisse investment fails, Cathay Life Insurance, a subsidiary of Cathay Holdings, tops the list. However, the company said no AT1 bonds were in its portfolio, and its Credit Suisse investments, which amount to approximately NT$34 billion (US$1.11 billion), are less-risky senior secured notes and enforceable. Shin Kong Financial is second on the list for holding NT$15.7 billion worth of Credit Suisse bonds, which accounts for 0.3% of its total assets. There were no AT1 bonds in the company's portfolio and their Credit Suisse bonds are senior-secured. China Development Financial Holding Corporation's exposure is approximately NT$15 billion, with no AT1, senior-secured. Following on the list are CTBC Financial Holding (NT$12.05 billion, no AT1), Fubon Financial (NT$11 billion, no AT1), First Financial Holding Co. (NT$3.05 billion, no AT1), Mega Holdings (NT$3.05 billion, no AT1), SinoPac Securities Corp. (NT$1 billion, no AT1), Taiwan Cooperative Holdings (NT$0.91 billion, No AT1), Taishin Financial Holdings (NT$0.83 billion), Hua Nan Financial Holdings (NT$0.41 billion), Yuanta Financial Holdings (no AT1), and E.sun Financial (No AT1). |
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| Sophia Yang, Taiwan News, Staff Writer | |
| 2023-03-21 |
