Moody's: Concentration undermines Taiwan banks

Moody's Investors Service said in a new report that credit risk concentration is undermining Taiwanese banks' financial strength and is negatively affecting their ratings, as it represents potential sources of volatility to asset quality, earnings and capital.

The name and industry concentration is affecting the long-term stability of the banking system, Moody's added.

Taiwanese banks have one of the highest borrower concentrations in Asia as measured by their top group exposures as a percentage of assets, equity and profit before tax and provisions, the agency said.

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