|dc.description.abstract||After Asian financial crisis, many banks in Taiwan underwent business recession due to the swelling of non-performing loans. In turn, those banks came to embrace the consumer finance. As a result, we saw an explosive increase in credit card and cash card issuance. Finally, in 2005, this excessive credit expansion led to the so called “two-card crisis,” which worsened the problem of bad debts and in the end caused a great loss in Taiwan’s financial business. As we can see, the Private Equity Funds have gained momentum and drawn international attentions for years.
In 2007, the Private Equity Funds bought shares in three local banks. Nonetheless, there are many things in our concerns, such as over-competition and the indigenous politico-economic complex of local finance, as we look to the future of such business. Thus, what the PEFs could come into effect in this regard deserves further analysis.
This research mainly focuses on the consequences of the PEFs’ investment and their involvement in three local banks as a case study, with special concerns on charge-off, profitability, management performance as well as the future development of Taiwan’s financial industry under these effects.||en_US|