Mega scandal brews trouble for Taiwanese lenders

Fallen angel 230x140
By Shruti Chaturvedi
06 Oct 2016

A recent fine by US regulators on the New York branch of Mega International Commercial Bank has led to demands for overseas branches of Taiwanese lenders to collect more comprehensive information about their clients. This is causing fears that the credit approval process for syndicated loans will lengthen, while banks will also find it tricky to lend to smaller borrowers. Shruti Chaturvedi reports.

The chairman of Taiwan’s Financial Supervisory Commission (FSC) resigned this week following a financial scandal stemming from a hefty $180m fine imposed on the New York unit of Mega, which was accused of violating local anti-money laundering (AML) laws.

FSC chairman Ding Kung-Wha stepped down on Monday amid ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial