PANHSIN BANK DEPOSITORS PREPARING TO WITHDRAW SAVINGS IN TAIPEI, 1999-02-04 (photo)

Depositors at Taiwan's beleaguered Panhsin Bank prepare February 4 to withdraw their Taiwan dollar savings, tens of millions of which are piled up behind the bank counter. Although Taiwan's finance ministry has attested to Panhsin's financial health, calling it a "model pupil", the bank has been hit by a run on cash because of its association with lawmaker Liu Ping-wei, who was reported by the ministry to have bounced cheques totalling more than T$100 million (US$3.1 million). A cousin of Liu is Panhsin's chairman and Liu holds a minuscule stake in the bank. Taiwan's stock market tumbled nearly four percent on Thursday, in part due to worries aroused by Liu's reported financial troubles, brokers said. JKP/DL