A study of operational synergy of financial holding companies in Taiwan and related regulatory issues of financial cross-sector business

• Main Authors: Shu-Li Yeh, 葉淑莉
• Other Authors: Jru-Sheng Yang
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/89359249503780801783

碩士 === 中原大學 === 財經法律研究所 === 100 === Abstract After joining the WTO in 2002, the Financial Institutions in Taiwan has to face global competition. Both the government and the business sector understand the urgency in facing the changes and the importance of making adjustment of the financial industry. As a consequence, the Financial Institutions Merger Act was enacted in 2000 for the purpose of expanding the economies of scale of local banks through merger and acquisition. In addition, six other financial-related laws were amended or enacted in 2001. Among them, the Financial Holding Companies Act (hereinafter referred to as “FHCA”) provides that financial holding companies may be set up and cross-sector business activities may be engaged for the purpose of enhancing the competitiveness of financial institutions. However, the existence of financial holding companies can really meet the overall challenges and respond effectively? Can it bring the effects of synergy into full play and achieve the so called 3C effects, cross selling, cost saving and capital deployment? It is a very interesting question worth in depth discussion. The cross-sector operating models in the financial industry may be divided into four types: strategic alliance, establishment of subsidiary, universal banking, bank holding company or financial holding company. The FHCA in Taiwan is modeling after the structure of U.S. Financial Modernization Act of 1999. It has been ten years since the enactment of FHCA. Sixteen financial holding companies have been established under the FHCA. Does the financial policy and goal of FHCA have been served? Does the content of FHCA require further amendment? The main topics of this thesis will be concentrated on the operational synergy and cross-sector business of Financial Holding Companies. This thesis is divided into six parts. Chapter I deal with the motivation and research methods of this thesis. Chapter II brings up the history of regulation and de-regulation of the financial industry for the purpose of understanding the background we discussed. Chapter III introduces the legal structure of cross-sector operating models of the financial industry in U.S., Japan and United Kingdom. Chapter IV illustrates the contents and the characteristic of FHCA and reviews the effects of the profit-making synergy of the Taiwanese financial holding companies. Chapter V considers the relevant legal issues caused by cross-sector operation, such as the compulsory transformation, separation of banking and commerce, merger and acquisition, enforcement of the Personal Information Protection Act and loopholes in the relevant laws and regulations in the supervision of financial institutions. At the end of this thesis, several suggestions are made, recommending that Taiwan should adopt different cross-sector operating models to strengthen the profit-making synergy and competitiveness of Taiwan’s financial holding companies.