TAIPEI (TVBS News) — Taiwan's Financial Supervisory Commission (FSC) announced on Thursday (Feb. 1) that it will fine Taichung Bank NT＄12 million for ineffective internal control systems and violations of banking regulations.
Wang Kuei-fong, the bank's chairman, allegedly diverted NT＄1 billion in public funds, leading to his arrest by prosecutors and bail set at NT＄15 million.
According to the FSC, Taichung Bank's insurance subsidiaries have been closely associated with specific credit customers and their related companies, paying over NT$1 billion in rent, marking an obvious deviation in trading decisions and unsatisfactory internal control systems.
As a result, Wang will be suspended for three months and could face a further fine, the bank stated.
Roger Lin, deputy director-general of the Banking Bureau, said the issue was uncovered during a financial inspection in February 2023.
Taichung Bank has been leasing aircraft since 2020 to expand overseas business; however, neglecting its utilization for 13 months, causing inappropriate decision-making.
Lin also pointed out that the bank leased high-priced official cars for VIP pickups at a monthly rate of NT＄820,000, yet the vehicles were only used twice during the lease period, which does not match cost-effectiveness.