Financial risks low, but bear watching: TABFVOLATILITY: The subindex on asset valuation risk slid last month, but remained above 100 because of an overheated property market, the institute saidBy Kao Shih-ching / Staff reporterThe nation’s financial risks remain low, but rising housing prices, lending risks in banks’ overseas branches and stock market volatility need to be monitored, the Taiwan Academy of Banking and Finance (TABF, 台灣金融研訓院) said yesterday at the launch of its Taiwan Financial Risk Index. Taiwan Academy of Banking and Finance (TABF) chairman Wu Chung-shu, second left, Financial Supervisory Commission Chairman Thomas Huang, center, TABF president Hank Huang, second right, and other guests attend a news conference in Taipei yesterday to announce the launch of the Taiwan Financial Risk Index. Photo: Wu Chia-ying, Taipei TimesThe nation’s first self-developed financial risk indicator, the index is composed of four sub-indices: asset valuation risk, systemic stress in the financial sector, potential instability in the non-financial sector, and spillover and contagion risks. A reading of below 100 indicates low financial risks, while a reading above the threshold suggests higher risks, the nonprofit organization said. The institute spent two years compiling the index based on the European Central Bank’s financial stability risk index.

Source: Taipei Times December 10, 2020 15:56 UTC