| Summary: | 碩士 === 國立政治大學 === 國家發展研究所 === 103 === The robustness of the financial sector is usually closely related to a country’s economic development. In recent years, domestic banks have proactively expanded into overseas markets. This study investigates the influence of internationalization on the performance of Taiwan’s banking sector in terms of financial globalization. First, the degree of internationalization of Taiwan’s banking industry and the extent of foreign bank entry will separately examined on the basis of statistical data. Next, the effects of the domestic banks’ internationalization and foreign banks entry on overall financial performance of Taiwan banks from 2005-2013 will be evaluated by applying the multiple regression analysis. Finally, a further analysis on whether the various internationalization strategies will lead to different performance among the banks will be conducted. The results of this study are as follows:
The degree of internationalization of Taiwan’s banking sector is explored from the following aspects: the proportion of oversea branches, the ratios of oversea assets, and the percentage of oversea revenues. The results show that there has been a steady growth of oversea branches and assets in the past decade except oversea revenues that declined initially but rose later. The degree of internationalization of Taiwan’s banking sector was 10.4%, 17.5%, 19.3% respectively by the end of 2014. Similarly, the degree of foreign bank entry is inspected from the following aspects: the proportion of foreign bank branches, the ratios of foreign bank assets, and the percentage of foreign bank revenues. The percentage of foreign banks entry was 4.7%, 14%, 13.5% by the end of 2013. Overall, this rate is not too high.
When it comes to domestic banks’ internalization, the results demonstrate that three variables FSTS, FATA, and OSTS are significantly positively correlated with ROA, and ROE. As for the foreign bank entry level, FATA2, OSTS2 are significantly positively correlated with ROA and ROE. This indicates that globalization does have a positive effect on the financial performance of Taiwan’s banks. Finally, as far as the further analysis of internationalization strategies is concerned, it is found that banks with offensive approaches have significantly higher performance than those with defensive approaches. However, the marginal effect is not significant. Thus, it is recommended that the banking industry can adopt an aggressive internationalization strategy to establish overseas branches in countries which have a high growth potential.
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