Taishin International Bank Co. Ltd.

The stable rating outlook reflects our view that Taishin Bank will maintain strong capitalization over the next one to two years, given its prudent capital management. We also forecast Taishin Bank will maintain its adequate business profile, asset quality, and funding and liquidity over the same period, along with a stable consolidated credit profile for Taishin Financial Holding Co. Ltd. (Taishin FHC) group. We may lower the rating on Taishin Bank if: The bank fails to maintain strong capitalization due to aggressive business expansion or sizeable credit losses. A RAC ratio below 10% over the next one to two years would indicate such a decline in capitalization; or Taishin Bank's asset quality significantly deteriorates due to loosening credit risk controls

...Taishin Bank has resilient market presence in Taiwan's consumer banking business. Taishin International Bank Co. Ltd. (Taishin Bank) has an established and widely known footprint in the domestic retail banking segment. The bank has well-developed credit card and consumer lending business, and a broad branch/ATM network with a large retail customer base. It is also one of the leading banks in terms of wealth management business and has the largest market share in digital banking accounts. Capital base is likely to remain strong relative to the bank's risk exposure. Taishin Bank's risk-adjusted capital (RAC) ratio was about 11.56% as of the end of 2022, which indicates strong capitalization. We believe the bank will maintain its strong capital base and the RAC above 10% with mid-single-digit loan growth over the next one to two years....

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