The Research of General Effects of Government-Owned Banks Merger – A Case Study on Taiwan Corporation Bank and China Farmer Bank

• Main Authors: HUANG, KUO CHING, 黃國清
• Other Authors: LIAO, YU-HUI
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/32658431151267792098

碩士 === 大漢技術學院 === 流通與行銷管理研究所 === 102 === There are too many competitors in Taiwan’s banking industry. Most of the banks are lack in economic scale and with similar operation, as result, the bank’s financial competitiveness declined seriously. In 2013, The Executive Yuan urged the Taiwan banking industry to step onto the merger way and toward the way of globalization as soon as possible. But due to the implementation of Bank Merger Acts are insufficiently, and the second financial reform caused lots of the heavy scandals, and most of merger are by way of hostile takeover and Toehold, the banks lack of motivation to pursue the Banks merger. The criterion of the merger of financial groups is the general effects of merge. It means the financial groups could reduce the cost, up-grade the efficient of capital and enhance the diversified management. This paper is discussing the Taiwan Corporation Bank and China Farmer Bank that merged by the way of hostile takeover under second financial reform, the effectiveness of synergy by compared the effects the merge for the begging to the end of the result by the dimensions of theoretical study and implementation of targets and running experience of international business. The conclusions of this research： 1. From a globalization strategy perspective toward the merge way is most important for the financial institutes. It has to establish a fair merge mechanism that interested by the mergers, and should provide the legal basis for the merge of financial institutes as soon as possible. Merge the government-owned banks in priority could encourage the financial institutes toward the merge way. 2. To achieve the general effects of merge is most important. Without the merger execution process and the merger planning process, the merge would just increase the cost of reorganization and coordination only. 3. Facilitating the merge of financial groups should not against the law of market. Establishing a market mechanism for the financial institute that fails to merge could help the government with flexibility to supervise the merger of financial institutes, and down the cost of crisis management. 4. Adjust the financial policy of straits smoothly to enlarge the scale of financial market. Open the market for the foreign financial products and new financial products in Taiwan but following the exchange rate of central bank. 5. Run the integration process smoothly, and confront coping the challenges of organization reinvention, reallocation of personnel, integration of computer resources, rights of the staff, conflict of organization culture with perfect measures to keep the general effects of merge.