HSBC will receive T$47.5bn ($1.5bn) from the Taiwanese government in return for taking control of The Chinese Bank, the former flagship unit of Taiwan’s Rebar conglomerate that collapsed last year after a run on deposits.

The deal will help put HSBC back on a par with its global rivals in Taiwan, as several foreign banks have acquired local lenders over the past couple of years. Under the terms of the deal, HSBC will inject $300m-$400m into the Taiwan bank to bring its financial ratios to “appropriate” levels.