Updated bank merger policy to debut in May: FSC
The Financial Supervisory Commission (FSC, 金管會) said it is updating regulations on bank mergers for an announcement by the end of May.
FSC Chairman William Tseng (曾銘宗) said the commission is studying bank merger regulations that could facilitate the formation of large-scale institutions that compete better in the Asia-Pacific region.
The updated policy may enable public tender offers — a public offer of a price usually at a significant premium over the current market price.
The FSC is likely to stipulate that a public tender offer must be for at least 51 percent of the target institution’s stock.
It is also studying clauses that safeguard the interests of small shareholders of the target institution.
“We hope for a result before the end of May at the latest,” Tseng said.
“The goal is that (the policy) will increase momentum of financial market integration and push Taiwan’s banking and securities sector further toward consolidation.”
The FSC was responding to long-standing calls from Taiwanese bankers to promote mergers in the domestic banking industry.
Banks registered in Taiwan are small-scale compared to their overseas counterparts and offer overlapping services that reduce the industry’s competitiveness as a whole, according to proponents of new regulatory moves.
State-run banks hold a 50-percent market share by assets, which means government measures are crucial for setting the stage for consolidation and private sector participation.
Tseng said yesterday that the FSC’s updated merger policy will not require amendments to existing laws and that interested parties may apply following the policy’s announcement.
Applications will be processed according to the Securities and Exchange Act (證交法) and require shareholder approval.
Eyeing Tourism Trade
Also yesterday, Tseng said the FSC hopes mainland Chinese tourism may boost Taiwan’s progress in becoming a financial services center for the Asia-Pacific region.
The number of mainland Chinese tourists broke the 10-million mark last year and generated enormous business opportunities for the financial sector, Tseng said yesterday at a summit for cross-strait entrepreneurs.
Last year’s tourism boom helped generate a profit of NT$85.3 billion at offshore banking units (OBU), a growth of 50 percent year-on-year, Tseng said.
Tseng said OBU revenue in 2015 may not top last year’s, but that offshore securities units (OSU) may bring in profits between NT$400 million to NT$500 million on trade from tourists.
The FSC aims to permit mainland Chinese to open accounts with Taiwanese brokerage firms’ OSUs while traveling in Taiwan.
