Taipei Fubon Commercial Bank Co. Ltd.

The stable rating outlook reflects our view of a moderately high likelihood that the Taiwan government would provide financial support to Taipei Fubon Bank if needed, given the bank's moderate systemic importance in Taiwan's banking sector. In addition, we forecast Taipei Fubon Bank will maintain strong capitalization and satisfactory asset quality over the next one to two years. We continue to view the bank as the core member of the Fubon FHC group, given its material representation and contribution to the group. We may lower the ratings on Taipei Fubon Commercial Bank if the bank fails to maintain strong capitalization, as indicated by a risk-adjusted capital (RAC) ratio consistently below 10%, or if the bank's risk position weakens due to

...Proactive capital management to control risk-weighted assets supports strong capitalization. In our view, Taipei Fubon Commercial Bank Co. Ltd. (Taipei Fubon Bank) will remain proactive in its capital management to support its various business growth strategies. The bank's timely and effective control of its equity portfolio helps to maintain a sufficient capital buffer for its strong capitalization. The Taiwan government has identified Taipei Fubon Bank as one of six domestic systemically important banks (D-SIBs). Therefore, we believe the bank will remain cautious in the management of its capital consumption and maintain stable earnings to support capital stability over the next one to two years....

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