Taiwanese banks reinvigorate Tarf market hit by loss and scandal

Industry well prepared for renminbi turbulence after learning lessons of 2014

Taiwan's Tarf market is looking more robust

After heavy client losses in 2014, to which many banks were said to have been exposed, and a series of fines against sellers, the Taiwanese target redemption forward (Tarf) market looked fragile. In August this year, it suffered a further shock when the renminbi tumbled against the dollar by 4.5% during the course of three days, following the People's Bank of China decision to reset its currency fix against the greenback. Yet the sector had become more resilient in the interim, based on tougher