South Europe debt crises has limited impact on Taiwan

The investment bank made the statement after Taiwan's financial regulator pointed out last week that Taiwan banks have a total of NT$33.78 billion invested in Greece, Portugal and Spain.

“This will have a limited impact in terms of eroding these banks' earnings,” Goldman Sachs said.

Taiwan financial shares fell as much as 10 percent after the crisis in southern Europe came to light last week.

Their poor performance had more to do with a correction in the short-term and a move by investors to take cover, Goldman Sachs said. Prospects of banks seeing their earnings eaten away by the crisis played out only marginally in the market, it said.

Goldman Sachs recommended financial shares with solid fundamentals and named Cathay Financial Holding as its first choice.

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