Standard Chartered Bank Buys 100% of Hsinchu International Bank

        Foreign banks seem to have a rosy view of the prospects for Taiwan’s financial industry, and a number of them are investing in or forming strategic alliances with domestic financial institutions (see attached table). One of these is the Standard Chartered Bank, U.K., which announced recently that it had paid a high price of NT$24.5 per share to procure the Hsinchu International Bank. This marks the first time that a foreign bank has purchased more than a 51% shareholding in a Taiwan bank.

The Standard Chartered Bank, which is one of the world’s major international banks, applied to invest in the Hsinchu International Bank under Article 23 of the Financial Holding Company Act and Article 25 of the Banking Law. Standard Chartered Bank’s parent organization, Standard Chartered PLC, operates 1,200 branches in 56 countries throughout the United States, the United Kingdom, Asia, the Middle East, Africa, and other areas. In terms of market value, Standard Chartered ranks the 42nd in the world.

Foreign Investments in Taiwan Banks

　

Foreign Investor	Institution	Shareholding Ratio
GE Capital Taiwan Holdings	Cosmos Bank	10%
Nomura Holdings	Taishin Financial Holding Co.	Common shares: 1.65% Convertible preferred shares: 1.65%
Newbridge Capital	Taishin Financial Holding Co.	Common shares: 6.61% Convertible preferred shares: 9.92%
Temasek Holdings (Private)	E. Sun Financial Holding Co.	6.3%
Shinsei Bank	Jih Sun Financial Holding Co.	31.8%
Dai-Ichi Mutual Life Insurance Co.	Shin Kong Financial Holding Co.	Projected 5.17%
Standard Chartered Bank	Hsinchu International Bank Co.	Projected 51~100%

Source: Financial Supervisory Commission, Sept. 29, 2006

      www.fscey.gov.tw/public/Attachment/692914352871.doc

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