(Combines with earlier story on regulators looking into yuan
TAIPEI, March 20 Taiwan's central bank said on
Thursday that local banks had the equivalent of $64.92 billion
in exposure to Chinese loans, investments and interbank deposits
as of end-December, leaving them more exposed to China than to
any other country.
On a quarterly basis, the exposure increased 27.3 percent in
the fourth quarter from the third, the central bank said.
Earlier in the day, the Commercial Times newspaper reported
that the island's financial regulators are checking seven banks
to see if they properly advised clients about potential risks of
currency investments after receiving complaints about losses
related to the recent sharp fall in the Chinese yuan.
The Financial Supervisory Commission (FSC) had many
complaints from investors about losses on yuan and other
currency products, including from clients of banking units of
Fubon Financial, Chinatrust Financial,
Sinopac Financial and several others, the paper said,
without citing sources.
FSC officials were not immediately available for comment.
In some countries where hungry investors have jumped into
yuan-related investment products, regulators are also expressing
concern about risks as Beijing boosts the currency's global
On Wednesday, Reuters reported South Korean authorities were
inspecting units of four foreign banks, reflecting Seoul's
concern about risks posed by the rapid rise in exposure to
China's markets and its currency.
Taiwan is seeking to play a key role in the
internationalisation of the yuan as it moves toward becoming
fully convertible, while Beijing has been keen to promote deeper
economic integration with its one-time political foe.
Last Friday, Taiwan's central bank urged individual and
corporate investors to be cautious of risks tied to the fall in
It said local yuan deposits were about 250 billion yuan ($40
billion) at the end of February, accounting for 21 pct of total
foreign currency deposits -- up from 15 pct at the end of
China's yuan plunged to a one-year low against the dollar on
Thursday and was on track for a record weekly loss, with
investors positioning for sustained weakness as the central
bank's actions indicated it was comfortable with the downtrend.
($1 = 6.1965 Chinese Yuan)
(Reporting by Faith Hung; Editing by Kim Coghill)