How Taiwanese Banks Providing Credits to Taiwanese Corps in Mainland China

• Main Authors: Yuang-Nan Wu, 吳永南
• Other Authors: Jung-Pao Kang
• Format: Others
• Language: zh-TW
• Published: 2005
• Online Access: http://ndltd.ncl.edu.tw/handle/20200392038693963145

碩士 === 國立成功大學 === 高階管理碩士在職專班 === 93 === 　Following its economic reform in 1979, Mainland China has enjoyed a significant economic growth, thanks to its competitive edge in land cost and cheap labor as it continues to lure the attention of worldwide investors to set up shop and invest in Mainland China, fostering Mainland China’s industry footing as a world factory. As marred by the deteriorating domestic investment environment and the increasing threats of Mainland China’s competitive edge, Taiwanese merchants have begun investing in Mainland China in search of taking the advantage of Mainland China’s cheap labor and land and in a move to strengthen Taiwanese merchants’ competitiveness. From the earlier day’s unauthorized investment move to the present day’s legally filed investment, the impact of the constantly expanding investment and the cross strait economic and trade interaction on Taiwan is becoming ominous. In investment mode, Taiwanese merchants’ investment in Mainland China has gradually shifted from the earlier day’s labor-intensive and export-bound brick-and-mortar manufacturing industry mode to a capital-intensive, technology-intensive and domestic sale-oriented diverse industry mode, which has fostered a dire need for financing means and capital allocation needs amid the rapidly increasing number of borrowers and financing amounts. 　The thesis attempts to sort out and recap, utilizing literary review and expert interview, the current stage’s feasible financing modes for Taiwan’s banking industry to finance in China, including the lending/financing mode by the local banks’ OBU braches to Taiwanese corporations’ subsidiaries in Mainland and/or it’s OBU entities, combining the parent company’s guarantee, to strengthen guaranteeing the debit claim. In addition, it also attempts to sort out the strategic alliance between the local banks’ OBU branches and Mainland regional banks or foreign-owned banks for providing Taiwanese merchants a collaborated financing mode in an attempt to identify a legal means of financing for Taiwanese merchants, help resolve the difficulty in financing common among the medium and small Taiwanese businesses, and explore new market for the Taiwanese bank operators confronting the fiercely competitive local banking environment that would allow the banks to continue providing migrating Taiwanese businesses with a host of financial services. 　The study’s interviews have unveiled that large-scale Taiwanese businesses are potential clients sought after by Chinese-funded banks and foreign-owned banks, and a majority of them do not hold high hopes in anticipating servicing coming from the Taiwanese bank operators following their setting up branches in China, which presents a compelling need that the Taiwanese bank operators ought to quicken their pace by keeping in close contact with major Taiwanese corporations in order to solicit and secure business ties at advantageous timing. As marred by a lowly rated borrowing credibility common among the medium and small Taiwanese businesses, which makes financing difficult, it is advisable for the Taiwan government to consider conditional deregulation for the Taiwanese banks to provide credit guarantee to Taiwanese merchants operating in China. In terms of pledging Mainland plants as collaterals, this not only helps to enforce the bank’s guarantee on the debt claim but also helps to prevent the Taiwanese merchant from further pledging whose land and plant for refinancing, If not only for the fact that it cannot be overly depended upon due to the uncertainty of mortgage claim enforceability in the future. Amid The New Basel Capital Accord that will soon be inducted by the end of 2006, it is prudent for the Taiwanese banks to instill a lending policy, and to strengthen the quality of lending to Taiwanese merchants in order to secure risk management, and excel Taiwan banking industry’s global competitiveness.