Over 50 senior bank managers have been reportedly demerited.
The Financial Supervisory Commission (FSC) has punished fifty four managers of seven state-run banks involved in the Ching-Fu Shipbuilding loan scandal, according to local media reports.
Amongst those downgraded, 25 are top managers. The latest punitive measures, which involve a downgrade or demerits, follows $1.34m penalty against 14 banks involved in the high-profile scandal last January with state-run First Commercial Bank (第一銀行) facing a fine of $339,997 (NT$10m), the highest allowed under the Banking Act (銀行法), while the Land Bank of Taiwan (土地銀行) and the Bank of Kaohsiung (高雄銀行) are to each be fined $272,000 (NT$8m).
The scandal erupted in August when an anonymous source reported that Ching Fu Shipbuilding Co is passing false progress reports for a $1.18b project on the construction of six minesweeper ships. The company defaulted on a $679m syndicated loan from state banks, according to local media reports.
Banks that took part in the Ching Fu syndicated loan include the First Bank, Land Bank of Taiwan, Bank of Kaohsiung, Bank of Taiwan, Taiwan Business Bank, Taiwan Cooperative Bank, Hua Nan Bank, Mega International Commercial Bank, Chang Hwa Bank, the Export-Import Bank of ROC, Shin Kong Bank, Yuanta Commercial Bank, Taichung Commercial Bank, and Ta Chong Bank, which has been merged into the Yuanta Commercial Bank since January 1, 2018.
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