A Study on The Conversion into Financial Holding Company of ChungHwa Postal Service Co., Ltd

• Main Authors: YUE-KUO PAN, 潘裕幗
• Other Authors: DAR-YEH HWANG
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/89053217412345894663

碩士 === 國立臺灣大學 === 財務金融學研究所 === 91 === ABSTRACT OF THESIS Year of graduation：january 2003 Thesis：A Study on The Conversion into Financial Holding Company of ChungHwa Postal Service Co., Ltd Institute：National Taiwan University Graduate Institute of Finance Tutor：Dr. DAR-YEH HWANG Graduate student：YUE-KUO PAN Since announcement of the Financial Holding Companies Law made by the government in July 2001, a total of 14 financial holding companies are operating in Taiwan, of which most are basically operated on banks while incorporating insurance and securities companies. These financial holding companies enjoy cutting edges in their business as some boast of huge assets while others excel in number of channels and territory as well. Through mergers and reorganizations, holding companies are demonstrating their consolidated effects. The centennial ChungHwa Postal Service was founded in the Ching Dynasty and has come undergoing reorganizations of its administration since 1945, when Japan returned Taiwan. The trajectory began as Taiwan Postal Administration, Northern, Central and Southern Taiwan Postal Administrations and as a company at present. Next it will become a private company before turning into a financial holding company. Businesses of the ChungHwa Postal Service Co., Ltd. cover communications, banking, insurance and securities, which facilitate the conversion into a new financial holding company. To solve hindered businesses and fund movements, organic structures of most state-owned companies become incapable of dealing with the market, once it becomes a private financial holding company, it would surely enjoy more room for business and the competent authority would easily implement the supervision measures on financial administrations, helping accomplish the objective of reasonable finance. As a financial institution is the backbone of a financial holding company, the communication business would then be turned to the hands of the government or another private business. If this business were a reinvestment of ChungHwa Postal Financial Holding Company, the postal resources would remain in the postal system, constructing the foundation for easy flow of materials, funds and information. The ChungHwa Postal Financial Holding Company may be established in 3 fashions. No. 1 is have current businesses of ChungHwa Postal become independent affiliate companies, including banks, insurance companies, securities companies and venture capital companies. Another approach would be merger with other financial institutions and the third one would be merged by other financial institutions. Whichever the choice becomes, it would be paramount to deal with the issue of privatization, which includes less confident public in postal service and corporate culture as well as management skills. These issues may be demanding in the process of conversion into a financial holding company, more important would be a meticulously schemed plan for its future, when core competence of the postal service would be in full play based on upgraded performance, enforced corporate government , successfully integrated resources before the postal service could make new milestones. As the postal service has long been a key provider of fund to the government’s currency policies, its conversion into a financial holding company would inevitably draw influences on state policies. Viewed from liberalization of finance, this move would mean sound supervision environment. However, the significant amount of capital held by the postal service is key to stabilized financial market; once the postal service becomes a private company, it would not be a political player and its tax-free status would be gone as it would have to compete in the market fairly. A qualitative change of the postal administration would be key to its survival. Key words： ChungHwa Postal Service Co., Ltd, Financial Holding Company, Postal Savings