Bank of Taiwan expects higher loan growth

Lender sees funding of Taiwan’s rail project and improved relationship with foreign banks as growth drivers.

Bank of Taiwan, the island's largest lender, sees further lending to growth as the region's economy continues to recover, but does not expect to complete a planned domestic share listing this year, a senior executive said.

Chang Ming Daw, president of the unlisted government-owned bank, said the capital needs of Taiwan's rail project and improved connections between the bank's lending team and international banks helped lift Bank of Taiwan's total lending in the first quarter. He did not disclose the amount of total loans.

"Our overall lending should rise but the market could see higher volatility in 2010, so it is difficult to tell how big the growth will be," Chang told Reuters on Sunday in an interview on the sidelines of the Boao Forum on the southern Chinese island of Hainan.

With total assets of about T$3.9 trillion ($124 billion), Bank of Taiwan plans to list
shares on the island's stock exchange but could miss an earlier target of listing in 2010.

"Since the government is our largest shareholder, it will take a number of steps and approvals before the listing can happen," Chang said.

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