Weaker RMB could wipe out $2.4bln of Taiwan banks’ assets: Fitch

Selling of risky target redemption forwards could hurt Taiwan’s private sector banks if the renminbi dips another 10%.

Dec 8, 2015

Fitch Ratings yesterday warned that 10 of Taiwan’s privately owned banks could incur aggregate losses of TWD79 billion ($2.4 billion), or 5% of assets, if the renminbi were to weaken by 10% from Rmb6.35 against the dollar.

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