The Effect of Macroeconomic Factors, Quantitative Easing and Taiwan’s Financial Policies on the Profitability of Offshore Banking Units: 2000-2012

• Main Authors: Fang-ChihKuo, 郭芳誌
• Other Authors: Hsin-Hon Kang
• Format: Others
• Language: en_US
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/tkw3q9

碩士 === 國立成功大學 === 企業管理學系專班 === 101 === Banks in Taiwan now face strong competition because there are too many banks (38 domestic banks and 30 foreign banks by the end of the year 2012); the products of each bank are quite similar, and the interest rate spread and fees charged are low. In order to break through this predicament, Taiwanese banks need to widen their sources of profits, and the Offshore Banking Unit (OBU) business is something Taiwanese banks can take advantage of. This research is an attempt to determine what factors affected the profitability of Taiwan’s OBUs during the years 2000 to 2012. This research uses Ordinary Least Squares and other econometrics testing methods to investigate whether some macroeconomic factors, Quantitative Easing policies and the launch of policy allowing banks to lend renminbi loans using OBUs had an impact on OBU profitability. This research finds out “The lending rate of China”, ”The remaining lending balance in foreign currencies”, ”QE1” and ”The launch of policy allowing banks to lend renminbi loans using OBUs” have positive effects on OBU’s profitability. And among them, ”The launch of policy allowing banks to lend renminbi loans using OBUs” has not only positive but also significant effect on OBU’s profitability.