Sector Review: How Overseas Expansion Could Improve Taiwan Banks' Profitability And Credit Profiles Mar 13
- Language: English
- Published: March 2013
- Region: Taiwan
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.
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Research Type: Commentary
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- - 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.