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ABSTRACT
Since1991, the establishment of the new bank has been set up, so that the financial industry， which is still in the oligopolistic competition, and facing the competition . However, the financial crisis of the new banks and the financial crisis of private banks since 1997 have led to the impact of financial and social stability. The DPP government in 2002, so has to accelerate the banking consolidation policy, especially to solve the controversy of the merger of Taishin Holdings and Chang Hwa Bank.
Began to implement the financial reform, President Chen Shui-bian proposed within 2 years, the bank over half to less than 5%, capital adequacy ratio maintained at 8% or more of the“258 ”financial target.
The main crux of the merger of Taishin Holdings and Chang Hwa Bank is that, there is the different understanding of transferring Chang Hwa Bank operating right, For Taishin Holdings，the investment of up to 36.6 billion must be resolve, otherwise, it will influence the investment policies of Taishin Holdings in long term; However, the Government suppose Taishin Holdings is not qualified in corporate governance and financial ratios.
Finance is highly-supervision industry, and the success of the banking consolidation dopends on government policy. Therefore, the study estimates the three programs of the merger of Taishin Holdings and Chang Hwa bank, over 25% controlling interest, 100% share exchange、and divestment, base on the intentions of Taishin Holdings and the Government and government policy direction. Regardless of the outcome is to merge or divestment,“merger of government own bank Mega Holdings” is better to achieve the objectives of government policy.
Keywords: Taishin Holdings,Chang Hwa Bank,The Second financial Reform of Taiwan | en_US |