| dc.description.abstract | The banking industry has been playing an important role in Taiwan’s economic development. Not only serves it as an important channel to collect people’s saving and corporate investments, but also it has significant importance in supporting our country’s economy and industrial development. Furthermore, the operating performance thereof is closely related to economic growth.
A research investigation recently conducted by McKinsey & Company, a globally known business consultant company, indicates that the deposits in Taiwan’s state-owned banks count about 50% of traditional banking business, whereas the total of “net income after tax” and “net profit” is less than 40% with a disproportional profit rate. This has been widely discussed in Taiwan’s industrial, governmental and academic circles with a question mark: “Is the operating capacity of state-owned banks really beyond private banks?” As the matter of fact, private banks have forecasted the changes of international financial environment and trends; and therefore actively promoted non-interest income business such as financial management and consumer finance long time ago. The results of having major business departments constructed are reflected in return on assets (ROA) and return on equity (ROE).
In recent years, Taiwan’s economy seems to have reached the bottleneck of growth. To go back to the peak, the government and private companies shall join hands to develop and implement, for example, the 5+2 Industrial Innovation Plan. Nevertheless, the development of emerging industry usually accompanies high risks. To assist industries in finding preliminary investment and financing funds, the assistance from state-owned banks will be required. At the moment, six out of Taiwan’s eight major state-owned banks, such as Mega Bank, Taiwan Cooperative Bank (TCB), First Bank, Hua Nan Bank, Chang Hwa Bank and Taiwan Business Bank, are actually listed privatized companies. These government-invested banks are actually in a quite difficult position as they need not only to follow national industrial policy, but also to give consideration to the profits and have them reported to shareholders. It is therefore interesting to know how our study object can gradually reach its objective of becoming a regional bank of Pacific Ocean with such expectation.
This study firstly introduces the background of this state-owned company, and then analyzes current market opportunities of the banking industry. Then, through SWOT and five-force analyses, find competitive advantages of the study object. Furthermore, by studying the transformation of large-size state-own banks around the world, study object’s opportunities for developing overseas business activities, wealth management and financial innovations are evaluated. It is expected that this study and results thereof will be offered to the study object as a reference for future transformation. | en_US |