| Summary: | 碩士 === 銘傳大學 === 經濟學系碩士在職專班 === 96 === Since our country promulgated “The Financial Institutions Merger Law” in December, 2000, and joined the World Trade Organization in 2001, the competition pressure from foreign financial companies has been gradually mounting in the domestic financial sector. To respond to the new regime, the government had passed the law of “Financial Holding Company Act” and actively encouraged the merger of local financial institutions. This symbolized the coming of the era of the cross-division operations in financial sector. However, the managerial efficiency of the new financial holding corporations has not been always positive. In order to integrate different corporate cultures, governance styles, and business emphases, it will incur additional cost in the areas of supervision, management, and operations. To investigate the pro and con of the “Financial Holding Company Act”, this research selects two cases of the mergers of the financial holding corporation’s subsidiaries: one is Fubon Bank’s merger with Taipei Bank, and another is Cathy Bank’s merger with United World Chinese Commercial Bank. We collect the financial statement data from 1998 to 2007 for the four companies, and then compare and evaluate the operational efficiency before and after the mergers. Furthermore, we also use the SWOT approach to discuss the feasible strategies of the banks. Research conclusions are as follows:
1. We find that the efficiency of the Subsidiaries of Taipei Fubon Bank and Cathy United Bank are not improved after the mergers.
2. According to the aggregate economic data, the reason the effect of the mergers is not as good as we expected is probably due to the facts that the whole economy was enduring a minor setback and the industry was facing some structural problems during the research period.
3. It usually takes at least 3 to 5 years to see the promising outcome of the merger. Since the length of the data in this research is only 3 years, it may skew our result. If we can extend the period of the research, we might see the expected improvement in the performance of the financial holding corporation’s subsidiaries.
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