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Taiwan regulator to allow banks 100% ownership in VC firms

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Taiwan regulator to allow banks 100% ownership in VC firms

Taiwan's Financial Supervisory Commission will soon allow banks to own 100% stakes in venture capital companies, up from 5%, a move that could channel NT$100 billion in capital into the country's industrial development and overall economy, Central News Agency reported Oct. 25.

The regulator, however, limits bank's investment in venture capital firms to 3% of their total net worth to reduce exposure to risky venture capital business, the report said, citing FSC Chairman Wellington Koo.

The new policy will not require a revision to the Banking Act, and is aimed at encouraging banks to invest in industries under the government’s "5 plus 2" industrial program, which includes biotechnology, green energy and national defense.

The FSC also said it will expedite banks' application process to invest in venture capital firms.

As of Oct. 25, US$1 was equivalent to NT$30.26.