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Taiwan checks seven banks after complaints about yuan losses: paper
March 20, 2014 / 1:16 AM / 4 years ago

Taiwan checks seven banks after complaints about yuan losses: paper

TAIPEI (Reuters) - Taiwan’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 fall in the Chinese yuan, the Commercial Times newspaper reported on Thursday.

A man walks past a Fubon Financial logo on the entrance of its headquarters in Taipei August 30, 2010. REUTERS/Nicky Loh

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.

On Wednesday, Reuters reported South Korean authorities were inspecting units of four foreign banks, reflecting Seoul’s concern about potential risks posed by the rapid rise in exposure to China’s markets and its currency.

Last Friday, Taiwan’s central bank urged individual and corporate investors to be cautious of risks tied to the fall in the yuan.

It said local yuan deposits were about 250 billion yuan ($40 billion) at the end of February, accounting for 21 percent of total foreign currency deposits -- up from 15 percent from end of January.

($1 = 6.1965 Chinese Yuan)

Reporting by Faith Hung; Editing by John Mair

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