The Study of Feasibility of Mergers between Bank of Taiwan and Hua Nan Commercial Bank based on the affiliation of financial industries .

• Main Authors: Mei-Yeh Wei, 魏美玉
• Other Authors: Dar Yeh Huang
• Format: Others
• Language: zh-TW
• Published: 2000
• Online Access: http://ndltd.ncl.edu.tw/handle/50125256938340906767

碩士 === 國立臺灣大學 === 財務金融學研究所 === 88 === There has been an ever-increasing trend of merger and acquisition among financial industries throughout Europe and the United States recently , with the aim of expanding the share of marketing , extending the market place , increasing business scope and reducing operating cost . In the wake of financial turmoil at home , the financial system in the Republic of China (ROC) has been getting deteriorated and weaker . With a view to upgrade competitiveness after joining the World Trade Organization (WTO) , we all recognize the continued need for affiliation among financial industries . After the announcement of government-led merger plan among Bank of Taiwan , Land Bank of Taiwan and Central Trust of China , the action taken by financial industries to search for the object to be merged has been increasing . Nevertheless , it is a huge task , and it is not opportune to drastically reduce staff size under present social environment . Therefore the cost-reducing effect cannot manifest immediately , only can it compress the merger cost and time by selecting the appropriate merger object , in an attempt to significantly maximize the merger efficiency . Therefore mergers and acquisitions among financial industries in the ROC nowadays should focus on the following : 1. Government-owned is superior to privately owned . 2. Complementary is superior to Similarity . 3. Give the first priority to those who have compatible information system . Bank of Taiwan holds more than 35% shares of Hua Nan Commercial Bank . Both have the similar staff , salary system as well as similar culture background , long-term investment object , mergers between these two banks will mark a significant milestone and efficiency . Bank of Taiwan , as the biggest shareholder of Hua Nan Commercial Bank , may lead the merger plan . They have been under the governance of Provincial Government for decades that resulted in cultivating similar management concept and enterprise culture . The difficulty to integrate employees can be reduced ; Hua Nan Commercial Bank may bring the privatization management to the new bank , and focus on the commercial banking , investment banking , real estate developing and insurance business as four operation directions in the future . Merger efficiency can be maximized only if the internal and external cliché may be relied on . Due to lacking of appropriate law to govern merger , “Financial Institution Merger Act” is being under screening , as regards Bank of Taiwan and Hua Nan Commercial Bank case , to merge one bank into another new bank sounds more feasible . I hereby make the following suggestion as conclusion : 1. To speedily approve “Financial Institution Merger Act”and“Financial Institution Holding Company Act”. 2.To relax the restrictions on the affiliation of financial industries . 3.To establish the “Financial Supervisor Committee”. 4.To keep intimate communication among employees before and after merger. 5.To speedily announce the merger plan and its effect on customers , in order to reduce customers drain .