Canada's Scotiabank Wants To Bid Farewell To Taiwan

Tom Burroughes

11 August 2016

Canada’s is asking Taiwan's financial regulator for permission to exit the local market, amid a change to the lender’s strategy for the Asian region.

Bank of Nova Scotia has been adjusting operations and shifting to deal with a slowing domestic economy.

Scotiabank, as it is also known, said its Taiwan office is being closed as part of a recent review of its activities in the Asia Pacific region, which it said remained an important part of its corporate, investment banking and capital markets business.

“The Asia-Pacific region is an important part of Scotiabank’s global banking and markets business, which includes our corporate, investment banking and capital markets portfolio. We continually review our operations to drive efficiency and competitiveness, as well as to ensure we are meeting the needs of our customers. As we grow and evolve our business, we will be focused on serving targeted customers in core sectors and markets in a way that complements our global banking and markets’ global capabilities. Our office in Taiwan is being closed as part of this recent review process,” the bank told this publication in an emailed statement yesterday.

"We continually review our operations to drive efficiency and competitiveness, as well as to ensure we are meeting the needs of our customers," Scotiabank reportedly said in an email.

An FSC spokesperson reportedly confirmed that it had received notice from the bank of its intent to leave the market.

Such a move highlights how the Asian region, while a fast-growing one in relative terms for high net worth individuals and assets, hasn’t been an easy hunting ground for international banking groups. Societe Generale and Barclays, to give two examples, have sold private banking businesses in Asia to local players. Toronto-listed Royal Bank of Canada, meanwhile, has trimmed booking centres in certain markets and spun off businesses, to focus on its domestic, US, and British/international markets.