Амстердам

Measures taken to manage credit risk

Taiwan Stock Exchange

Robust Framework to manage risk exposure

Strict regulations imposed by the Financial Supervisory Commission

References

TWSE does audits and credit ratings, in-house

Integrity

Credit Risk

Only recommend what is beneficial and suitable for the customer.

NOT

Recommend loans beneficial to loan officer to meet targets

Unsystematic Risk

A Credit Analyst must be responsible to their actions

Have to have the responsibility to check on potential customers before awarding loans

= specific risk = diversifiable risk = residual risk

stock market participant's inability to pay off debt when due

Industry Sectors on TWSE

Жақсылық Орынбасар

Амстердам биржалық қоры

uncertainty that comes with the company or industry you invest in

Differences in business environment

taiwan stock market

Customer friendly/ Better Customer service. They cater to the needs of the elderly by including magnifying glass and bifocals.

The staff in all the financial institutions that we visited were very hospitable and welcoming

However...

Why is TWSE so successful?

HIGH TECH COMPANIES

Financial institutions focus more on dominating the local market and are not as concerned with branching out to foreign markets.

TWSE has no immediate plans to diversify as TWSE is a niche market for high tech companies

Investors from all over come to TWSE to invest in these high tech companies as it is one of the most developed market for high tech companies

The taiwanese banks still maintain traditional practices of giving the locals a choice to use stamps instead of using signatures

Credit policies in taiwan are less

flexible as compared to our local regulations.

Even though we are facing unsystematic risk, it has also benefitted us as we are able to specialise in the tech market which have attracted many investors into our market. Therefore despite the fact that SGX operates longer trading hours and has a more diversified market, SGX’s trading volume is not as high as that of TWSE

Comparing TWSE and SGX

if we were to shift the focus of our market, TWSE will lose its appeal as a market for high tech companies

will be detrimental to TWSE

taiwan stock exchange is dominated by these tech companies

TWSE = NICHE MARKET

I am looking to invest in

the technology stocks!

CONTENTS

Solution for Key challenge 2: Unsystematic Risk

1. Brief Background of TWSE - VIDEO

2. More differences between TWSE and SGX

3. Risks faced by TWSE

4. Measures taken by TWSE to manage the risks faced

5. Recommendations for key challenges

6. NP Core Values

Risks faced by TWSE

Diversifying their Stock Exchange

Comparing TWSE and SGX

Avoid placing all eggs in one basket

Unsystematic Risk

Not only focus on one sector

Credit Risk

high tech companies

Solution for Key challenge 1: Credit Risk

other companies

Know your customers well

134 foreign

642 domestic

checking the credit worthiness of the company listing on the stock exchange

design by Dóri Sirály for Prezi