Merger Synergies of Bank’s Subsidiaries: A Case of Taishin Financial Holdings

• Main Authors: Wen Hwa,Wu, 吳文華
• Other Authors: 林霖
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/65765383905798766845

碩士 === 國立暨南國際大學 === 管理學院經營管理碩士學位學程碩士在職專班 === 101 === Abstract Because of the small economic scale and over-competitive in Taiwan, the performance of banking business is always low profitable. In the early era, most financial institutions, such as State-owned banks, Credit Union, Farmers' Association and Fishermen Association, can profit by interest rate spreads under the confined market in Taiwan. However, by lowing the prime rate/ interest rate, financial institutions cannot acquire benefit by the interest rate spreads as usual. Thus, some bad management financial institutions have to merge with others for surviving in the market. Somehow, merging as a bigger institution is not the cure for low-profit, good management is. Due to bad management, some merged financial institutions were facing high bad debt and further jeopardized the confidence of clients. Under this circumstance, for stabilizing the financial market, some outstanding banks have to merge shabby banks. Besides, capital supplier is no more the only role for financial institutions; some new financial services have to be launched for modern market. Under this changing, merger is the best means to expand the economies scale and to dominate market share, which is the so-called scale economies merger. The purpose of this thesis is trying to find out the pro and con of the scale economies merger of Taishin international Bank and Chang Hwa Bank via historical references and case studies. What can be found is: merging other financial institutions, for instance Credit Cooperatives, Dah-An Commercial Bank and Chang Hwa Bank do benefit to Taishin Financial Holding Co. Ltd., The vision of merger is positive and reachable. But, it is not possible to optimize the merger under a hydra-headed financial company. Once there are two independent banks- Taishin international Bank and Chang Hwa Bank under the Taishin Financial Holding Co. Ltd., all the performances and efficiency is below average and far behind the two main competitors: Fubon Financial Holding Co., Ltd and Cathay Financial Holding Co., Ltd. If these two independent banks can be merged to one, the performance, financial structure and capital of Taishin Financial Holding Co. Ltd. will be powerfully improved in the near future.