Scotiabank eyes Taiwan exit

As a part of a continuing revamp of its strategy in Asia, Scotiabank is has applied for clearance to withdraw its Taiwan presence

According to the Financial Post, Bank of Nova Scotia has sent Taiwan’s Financial Supervisory Commission (FSC) notice of its intent to exit the local market as part of its continuing Asia strategy revamp.

“They are planning to leave Taiwan in the fourth quarter. We have not approved (its departure) yet as there are still some administrative procedures to go through,” said an official of the Taiwan financial regulator in a statement on August 8. “On principle, we will respect their wishes.”

Canada’s third-largest bank, along with other Canadian banking industry players, has been tweaking international operations as they deal with a slowdown in their domestic economy as well as impacts of weakening oil prices.

The Toronto-based bank has the largest international presence of all Canadian banks, but its Asian operations contribute only a minute fraction to its overall revenues. Revenues from Asia were $394 million in fiscal 2015, just 4.5% of its international banking revenue and 1.6% of revenues overall.

In December, the bank signaled intentions to sell its 49% stake in Thai auto loan provider Thanachart Bank Pcl in an effort to boost its capital ratios.

A statement published on the central bank of Vietnam’s website announced its approval of a decision to withdraw the bank’s license for its representative office in Hanoi.

Scotiabank has also moved some of its staff in sales and trading from Hong Kong to Singapore over the last two months.

Analysts have suggested that Scotiabank may ultimately focus its international operations more on Central and South America.

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