Consolidation Far From Over In Taiwan's Banking Sector Feb 06
- ID: 1820330
- February 2006
- Region: Taiwan
- Standard & Poors
Although consolidation in Taiwan's banking sector has accelerated since 2001 on the back of regulatory and market structural changes, its effect on overall market competition has been limited so far. The industry continues to suffer from fierce competition, low profitability, and insufficient product differentiation. Further consolidation is needed to enhance operational efficiency but is currently hindered by growing concern about higher integration risks, in particular steeply rising acquisition costs and strained labor relations, especially at state-owned banks. One possible way to speed up consolidation would be for the regulator to relax the current restrictions on opening new bank branches, as this would likely force a strategic rethink by weak banks and pressure them to sell out to stronger rivals at...
Companies mentioned in this report are:
- Prudential PLC
- Bank of Taiwan
- CTBC Bank Co. Ltd.
- Mega International Commercial Bank Co. Ltd.
- Cathay United Bank Co. Ltd.
- Chang Hwa Commercial Bank Ltd.
- Taiwan Cooperative Bank Ltd.
- Farmers Bank of China
- Central Trust of China
- Taipei Fubon Commercial Bank Co. Ltd.
- E.SUN Commercial Bank Ltd.
- Bank of Overseas Chinese
- Cosmos Bank
- Union Bank of Taiwan
- Bank SinoPac
- Taiwan Shin Kong Commercial Bank Co. Ltd.
- Sunny Bank
- Taiwan Business Bank
- Mega Financial Holding Co. Ltd.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues. SHOW LESS READ MORE >
- - Prudential PLC
- - Bank of Taiwan
- - CTBC Bank Co. Ltd.
- - Mega International Commercial Bank Co. Ltd.
- - Cathay United Bank Co. Ltd.
- - Chang Hwa Commercial Bank Ltd.
- - Taiwan Cooperative Bank Ltd.
- - Farmers Bank of China
- - Central Trust of China
- - Taipei Fubon Commercial Bank Co. Ltd.
- - E.SUN Commercial Bank Ltd.
- - Bank of Overseas Chinese
- - Cosmos Bank
- - Union Bank of Taiwan
- - Bank SinoPac
- - Taiwan Shin Kong Commercial Bank Co. Ltd.
- - Sunny Bank
- - Taiwan Business Bank
- - Mega Financial Holding Co. Ltd.