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ASSETS MANAGEMENT COS MAY DEPRESS TAIWAN'S REAL ESTATE MARKET.

AsiaPulse News

| November 01, 2001 | COPYRIGHT 2001 Asia Pulse Pty Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

TAIPEI, Nov 1 Asia Pulse - Taiwan's sluggish real estate market could slip further if assets management companies (AMCs) suppress the purchasing prices too much, said Central Bank of China Deputy Governor Chen Shih-meng.

Chen made the comments while addressing the opening ceremony of the seminar in Taipei Oct. 30-Nov. 1 on non-performing loans (NPLs) resolution mechanisms and their impact on the financial systems, sponsored by the Southeast Asian Central Banks Research and Training Center (SEACEN).

AMCs have functioned effectively in many countries in resuming lending and in recovering fair value of distressed assets, especially when the financial systems were in trouble.

Chen said that the establishment of AMCs is one of the mechanisms that has been applied by Taiwan's financial authorities to help solve the problem of the existence of a large number of ailing financial institutions.

The Bankers Association of the ROC set up the first AMC in Taiwan, namely the Taiwan Asset Management Co., early this year after the government gave the green light at the end of last year. Several domestic banks and international financial institutions also plan to apply for ...

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