The Analysis of Taiwanese Banking Penetration Strategy into China after Signing the Cross-strait MOU and ECFA

• Main Author: 戴義烜
• Other Authors: 陳安斌
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/58472455981102560089

碩士 === 國立交通大學 === 高階主管管理碩士學程 === 99 === In the past decades during the economic development in Taiwan, the financial industry has been playing an important role of sustaining the growth of the industry. Along with the trend of economical openness of China and division of labor of global industries, there are many kinds of industry and companies continuously go to China and invest in it. However, due to the political issues, the financial institutions cannot provide in-time services on both the fund assistance and financial services, this not only decreases Taiwan’s firms’ competitiveness and blocks the growth of industries, but also let the financial institutions in Taiwan can only struggle within the situation. Their competitiveness decreases gradually with severe competitive selling among limited customers and services. Nevertheless, with the cross-strait Memorandum of Understanding (MOU) and the Economic Cooperation Framework Agreement (ECFA) have been signed on November 16, 2009 and June 29, 2010 separately, which give the domestic institutions a delight to get into Chinese market, and offer Taiwanese banks seeking more favorable strategic position in Mainland China. This study makes use of literature review and many kinds of statistics, comprising adequate questionnaires and interviews with experts in banking systems to be aware of the current situation on cross- strait financing. It also shows the financial environment and regulations for the incoming foreign banks. Through observations of the developing experiences of foreign banks in China, the study tries to analyze the expansion model and principles of them. In the end, it suggests the format and the tactics for the business penetration strategy into Chinese financial market. In conclusion, the study states that the banking penetration strategy into Chinese financial market should base on the cross-strait national regulations, and put local banks’ individual competitiveness into considerations. Through establishing branches, subsidiaries and investing in Chinese local banks. In the beginning, the strategy is to focus on the corporate financing on Taiwanese firms. When there is a solid base, it will create and advance to a higher level of profitable niche.