Cross-strait Financial Platform：What is in for Taiwan Bank？

• Main Authors: CHEN,YI-PING, 陳羿萍
• Other Authors: Ying Yi Tsai
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/41481751900864276413

碩士 === 國立高雄大學 === 應用經濟學系碩士班 === 105 === So far, China has become the largest investment country of Taiwanese banks. If China’s policy changes, it will cause a huge impact on Taiwan’s economic system. Therefore, we hope to understand the current situation of Taiwanese banks and problems they face during investing in China, using the collected literatures and data to do SWOT analysis to understand the strengths and weaknesses of Taiwanese bank. Moreover, in order to strengthen Taiwan’s domestic banks’ ability of risky controlling, Financial Supervisory Commission develops the “Regulations Governing the Banking Activity and the Establishment and the Investment by Financial Institution Between the Taiwan Area and the Mainland Area”. Among the article 12-1, it says that ‘For a Taiwan banks’ business activities in Mainland Area, its aggregate amount of credit, investment and interbank loan and deposit may not exceed 100 percent of the bank's net worth as of the end of the preceding fiscal year; The calculation methods shall be as prescribed by the Competent Authority after consultation with the Central Bank.’. Therefore, we will explore the reasons why Taiwanese banks reduce the exposure amount by researching banks’ financial statements and publicly disclosed information. We can find that the main reasons include the reduction of net investment, credit and capital, second, the increasing in the net value of the banks, third, the bad debts of china’s company, and the last one, the investment pressure of CNY’s devaluation. These are the four reasons why Taiwanese banks reduce their investment in China. In the end, we use SWOT strategy matrix to discover the new chance. Grasping the new business opportunities brought by the reform in China. Besides, properly handling the threat of high risking to reduce the risk that Taiwanese bank will face during investing in China.