Taiwan Financial Holding Co. to be inaugurated Jan. 1

Premier Chang Chun-hsiung said yesterday that Taiwan Financial Holding Co. will become the 18th-largest in Asia and the 89th-largest financial institution in the world when it is formally inaugurated Jan. 1.

Chang made the remarks when he attended a party to mark the inauguration of the national-level financial company.

Chang said Taiwan Financial Holding, formed as the result of a merger of the Bank of Taiwan, the Land Bank of Taiwan and the Export-Import Bank of the Republic of China, has combined assets of NT$5.12 trillion.

It has deposits of NT$3.88 trillion and active loans of NT$3.24 trillion, the premier said, adding that it will become the nation's top financial services provider, overtaking Cathay Financial Holding Co., currently the largest financial institute in terms of assets.

The merger of the three state-owned financial institutions was part of the government's efforts to upgrade the overall competitiveness of the country's financial industry.

Taiwan Financial Holding has 308 domestic branches and 16 overseas units in Europe, the United States and Asia. It has also set up footholds in Vietnam and Macau, giving it good globalized deployment.

Chang pointed out recently that following the implementation of the Financial Holding Company Act, various domestic financial institutions have established holding companies as a means of heightening their operating efficiency and competitiveness.

However, they have met with strong challenges from international holding companies, which enjoy the advantages of huge size, international awareness, product development capability and global branch networks.

The establishment of a national-class financial holding company in Taiwan, therefore, is an urgent matter, he said.