Latest news with #FinancialSupervisoryCommission
Finextra
15-07-2025
- Business
- Finextra
Cathay United Bank partners Avaloq to establish onshore private bank in Taiwan
Taiwan has launched a new Asset Management Hub in Kaohsiung to accelerate the development of onshore private banking and strengthen its position as a regional wealth management centre. 0 As the first bank to establish private banking operations under this initiative, Cathay United Bank, in partnership with its longstanding technology provider Avaloq, is helping to shape the future of onshore private banking in Taiwan. Headquartered in Taipei, Cathay United Bank is a leading financial institution in Taiwan with a strong track record in wealth management. Following the liberalization of local regulations, the bank partnered with Avaloq in 2020 to help establish Taiwan's onshore and offshore private banking sector, leveraging the Avaloq platform's core banking capabilities to enhance operational efficiency and client service. Building on this foundation, the Financial Supervisory Commission (FSC) has now introduced an Asset Management Hub in Kaohsiung to promote the development of Taiwan's onshore wealth management and private banking industry. The initiative is designed to foster homegrown expertise and allows financial institutions to offer a wide range of banking and investment services, including active ETFs and passive multi-asset ETFs, consultancy for family offices and high-value insurance products. Cathay United Bank is taking a pioneering role as the first financial institution to establish private banking operations in the new Kaohsiung Asset Management Hub. The bank is working closely with Avaloq to set up a new booking centre and operational base in Kaohsiung, delivering tailored private banking services to high-net-worth individuals across Taiwan. As a leader in wealth management technology and services, Avaloq has been instrumental in enabling financial institutions across Asia to scale their operations and meet evolving client needs. With over 40 years of experience in wealth management and private banking technology, Avaloq is ideally positioned to support Cathay United Bank's expansion into this new onshore business. Avaloq will provide end-to-end support for Cathay United Bank's private banking operations in Kaohsiung, enhancing operational efficiency across the front, middle, and back office through high straight-through processing (STP) and data consistency. In addition, the Avaloq platform will provide front-office automation, supporting the bank's portfolio management, client relationship management, and client lifecycle management, while ensuring seamless integration with the bank's existing systems. These capabilities will help Cathay United Bank streamline operations, supporting revenue growth and enabling more personalized client service. Robert Fuh, Chief Executive Officer of Private Banking at Cathay United Bank, said: 'Our partnership with Avaloq has played a key role in expanding our wealth management capabilities in Taiwan, Hong Kong and Singapore. We are proud to be the first bank to establish onshore private banking operations in the new Kaohsiung Asset Management Hub, demonstrating our leadership in the Taiwanese financial sector and to serving the needs of Taiwanese investors. We thank the Financial Supervisory Commission (FSC) for this forward-looking initiative, which will help drive growth in Taiwan's financial sector and deliver greater value for investors.' Eliza Chang, Regional Director for North Asia at Avaloq: 'The establishment of the new Asset Management Hub in Kaohsiung marks a significant milestone for Taiwan, and we are delighted to support Cathay United Bank as a pioneer in Taiwan's new onshore private banking sector. We have a strong track record in enabling and developing Cathay United Bank's wealth management operations both onshore and offshore – and this marks an exciting new chapter in our partnership. Our community of clients can depend on our industry expertise, leading platform and understanding of local regulations to support their growth and help them respond quickly to evolving market demands.'
Bloomberg
30-06-2025
- Business
- Bloomberg
Taiwan Insurers' FX Losses Double in May on US Dollar Slump
Taiwan's life insurers' foreign exchange losses more than doubled to a combined NT$263.8 billion ($9.1 billion) from January through May, as the US dollar's recent slide drove down the value of their foreign holdings. Losses grew from NT$118.3 billion during January to April, according to a statement from the Financial Supervisory Commission in Taipei on Thursday. The industry's foreign exchange loss of NT$145.5 billion in May was the worst since the FSC started releasing the data in 2018, according to calculations by Bloomberg News.
Mint
26-06-2025
- Business
- Mint
Taiwan Insurers' FX Losses Double in May on US Dollar Slump
Taiwan's life insurers' foreign exchange losses more than doubled to a combined NT$263.8 billion from January through May, as the US dollar's recent slide drove down the value of their foreign holdings. Losses grew from NT$118.3 billion during January to April, according to a statement from the Financial Supervisory Commission in Taipei on Thursday. The industry's foreign exchange loss of NT$145.5 billion in May was the worst since the FSC started releasing the data in 2018, according to calculations by Bloomberg News. The Taiwan dollar's roughly 12% gain against the greenback this year has pummeled local life insurers by reducing the nominal value of their approximately $786 billion foreign currency assets. The $1.2 trillion industry's foreign exchange loss in May doubled from the roughly NT$68 billion shortfall seen in April. The foreign exchange loss also swung the industry's pretax profit into a loss of NT$61.7 billion for first five months of the year. The sector reported a profit of NT$44.9 billion in the first four months. Regulators have taken steps to give life insurers more flexibility in using their reserves. The FSC earlier this month said insurers could also use six-month average exchange rates in their semi-annual reports, a move that could help them reduce the impact of sudden swings in the currency. The Taiwan dollar on Thursday again strengthened and rose 0.8% to 29.165 at close, marking the highest level since 2022. The central bank is closely monitoring foreign investors' inflows in local inverse and leveraged ETF products, which are usually used as tools to profit from gains in the Taiwan dollar. With assistance from Betty Hou and Argin Chang. This article was generated from an automated news agency feed without modifications to text.
Mint
26-06-2025
- Business
- Mint
Taiwan's Central Bank Wards Off FX Speculators Piling Into ETFs
(Bloomberg) -- Taiwan told foreign investors to exit bets on the local dollar, taken through exchange-traded funds, as a 12% gain in its currency threatens its economy and companies. The strategy involves investors buying the island's ETFs and inverse ETFs, allowing them to accumulate holdings of Taiwan dollars while maintaining a neutral position in the stock market. Foreign funds have been 'repeatedly' deploying this playbook to speculate on the currency, according to Deputy Central Bank Governor Yen Tsung-ta. A sign of the ballooning currency bets can be seen in how foreign holdings of Taiwan's biggest inverse stock ETF had surged to 914.7 million shares, more than 90 times the amount at the start of the year, according to data from Taiwan's stock exchange. An inverse ETF allows investors to profit from a decline in the market. 'As soon as we detect it, we immediately request that the funds be remitted out,' Yen said in response to lawmakers' questions Wednesday. Foreign investor activity around the ETFs came under the spotlight after the Taiwan dollar notched the biggest single-day gain since the 1980's last month. The almost unprecedented rally is posing a risk to the island's export-reliant economy and putting pressure on the life insurance industry, which has massive exposure to dollar assets. Foreign holdings of a single inverse ETF must be kept under 30% to discourage overseas flows of cash into Taiwan that are intended to target the currency rather than investing in Taiwanese assets, according to an agreement between the central bank and the Financial Supervisory Commission from 2020. There is also an official regulation in place that requires foreign inflows must be used for investment in domestic securities, and foreigners' investments in fixed-income related products must be kept under 30% of their inflows. To fend off speculations, the central bank can use so-called 'window guidance' on onshore banks, but it lacks formal authority to directly restrict offshore investors from engaging in such trades. 'We are continuously monitoring the situation through our surveillance system,' said the deputy governor on Wednesday. The Taiwan dollar strengthened as much as 0.8% against the dollar on Thursday and leads gains among Asian currencies this year. More stories like this are available on
Bloomberg
12-06-2025
- Business
- Bloomberg
Taiwan Eases Rules to Help Insurers Cope With Currency Surge
Taiwan regulators have moved to help the island's insurers deal with the impact of a recent surge in the local currency, which had left them with massive paper losses on their foreign holdings. Insurers will be allowed to use six-month average exchange rates when they calculate risk-based capital in their semi-annual reports, the Financial Supervisory Commission said in a statement. At present, insurers use the exchange rates of the final day of the reporting period.
