《TAIPEI TIMES》 KGI Bank posts forex losses of NT$240 million

/ Staff writer, with CNA

KGI Bank （凱基銀行）, a subsidiary of China Development Financial Holding Corp （中華開發金控）, yesterday said it has strengthened its risk management after sustaining a NT$240 million （US$8.1 million） loss from transactions in Canadian dollars.

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The bank said it immediately reported the loss to the Financial Supervisory Commission and has conducted an overview of its risk management mechanism for foreign-exchange trading to avoid any recurrences.

The loss, which was listed in KGI’s financial statement for last month, would not affect the bank’s clients, as the transactions were made using the bank’s money, it said, adding that the dealer handling the transactions has already left their post.

KGI last month reported a NT$283 million post-tax net loss, but its net profit for the first quarter was NT$678 million, or earnings per share of NT$0.15, its financial statement showed.

Although news of the loss seems to have had a limited effect on China Development’s stock price, which closed flat yesterday, the bank could still face punishment from the government.

The commission yesterday said it has received an investigative report from KGI, adding that it would take disciplinary actions in accordance with its findings.

Under the Banking Act （銀行法）, an institution that fails to establish or diligently conduct internal control could face a fine of up to NT$10 million.

新聞來源：TAIPEI TIMES