ROC regulator: Postal deposits may spur lending

“We will coordinate with the transport ministry on the possibility of allowing the postal bank to transfer some deposits to the small and medium-sized banks to encourage them to lend,” Sean Chen, chairman of the Financial Supervisory Commission, said in a prepared speech in parliament today.

Taiwan’s transport ministry oversees the operations of Chunghwa Post Co. Ltd.

The Cabinet last month approved a NT$483 billion package to bolster economic growth and revive a stock market that has slumped 50 percent in 2008. The island’s economy may sink into a recession this year after shrinking in the third quarter for the first time since 2003.

Outstanding loans and investments of Taiwan’s major financial institutions, including the island’s postal savings system, reached NT$21.32 trillion at the end of October, 3.91 percent more than a year earlier. The increase was smaller than September’s 4.03 percent growth.

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