FSC Holds Ghost Festival Ritual, Chairman Peng Vows 'Three As' Amid Speculation on Changhua-KGI Merger

The Financial Supervisory Commission (FSC) held a Zhongyuan Ghost Festival ritual today (27th), led by Chairman Peng Jin-long and senior officials from various departments. Peng publicly vowed the 'Three As'—peace, safety, and assurance—expressing hopes for a secure and stable financial market and a trustworthy financial environment for the public.

Regarding recent market speculation on a 'Citizen-Citibank Merger' (public-private financial merger), Changhua Bank's public announcement to select a financial advisor has led to speculation that it may be preparing to acquire KGI Financial Holding. In response, Banking Bureau Director Tong Zheng-zhang stated that no such individual case has been submitted to the FSC. He emphasized that the regulatory authority treats all shareholders and cases equally, strictly following public disclosure and legal procedures.

In a media briefing, Peng explained that this year's three wishes are deeply traditional. The first 'An' (peace) is a prayer for the health and well-being of FSC staff and journalists. The second 'An' (safety) reflects the hope that financial market development proceeds under stable and secure conditions, supporting industrial prosperity and Taiwan's economy.

On financial market development, Peng outlined five key initiatives: advancing the national plan for an 'Asian Asset Management Hub,' building an internationally competitive capital market, establishing a regulatory framework for virtual asset service markets, continuously adjusting regulations in response to environmental changes, and promoting financial innovation.

The third 'An' (assurance) aims to create a financial transaction environment where all citizens feel secure. Peng proposed four key directions: strengthening financial consumer protection, enhancing corporate governance, actively combating financial fraud, and continuously promoting sustainable finance.

Peng emphasized that the financial industry should fulfill its mission of 'Trusted Finance' by providing a secure and reliable service environment for the public.

Is Changhua Bank acquiring KGI? Banking Bureau Director Tong: No current case, regulations applied equally

Changhua Bank's recent public announcement to select a financial advisor has sparked market speculation about a potential merger with KGI Financial (Citizen-Citibank Merger). Tong stated that the FSC's core responsibility is to establish a fair, reasonable, and open legal environment. Financial institutions may grow according to their own strategies, but currently, 'no related case has been received.' Any future developments will be disclosed publicly by the institutions involved.

When asked whether institutions have communicated privately, Tong explained that communication between industry and regulators is routine. However, due to the sensitivity and public disclosure principles of financial markets, the authority will not reveal details of such communications.

Regarding policy considerations on 'public-public' or 'public-private' mergers, Tong emphasized that regardless of shareholder background, the regulatory authority treats all cases equally, focusing on the institution's own development strategy and market stability.