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Taiwan's Cathay United secures capital to meet domestic standards by 2019-end

Cathay Financial Holding Co. Ltd. plans to inject NT$10 million into Cathay United Bank Co. Ltd. to help the banking subsidiary meet capital standards set for domestic systemically important banks by the end of 2019, well ahead of the four-year regulatory deadline, the Taipei Times reported.

The bank's common equity Tier 1 and Tier 1 capital ratios as of June 30 came in at 9.8% and 11.4% respectively, failing to meet the Financial Supervisory Commission's required minimum of 11% and 12.5%. The capital injection is expected to raise the lender's CET 1 ratio to 10.4%, as well as increase the Tier 1 capital ratio, the Aug. 23 report added, citing Cathay Financial spokesman Daniel Teng.

The bank, which was added to the list of domestic systemically important banks in June, also plans to reduce its risk-weighted assets in order to achieve a higher CET 1 ratio, Teng added.

As if Aug. 22, US$1 was equivalent to NT$31.39.