Taiwan - Banking

As of January 2016, Taiwan has a Central Bank, 40 domestic banks (with 3,444 branch offices), and 30 foreign banks (with 38 branch offices).  In addition, there are 23 credit cooperatives, 282 farmers’ credit unions, and 28 fishermen’s credit unions. These banks, cooperatives, and credit unions have traditionally played a dominant role in finance on the island.
The Central Bank performs all of the functions normally associated with central banks in other markets.  It issues currency, manages foreign-exchange reserves, handles treasury receipts and disbursements, sets interest-rate policy, oversees the operations of local financial institutions, and serves as a lender of last resort.

Taiwan’s domestic banks offer a wide range of services – receiving deposits, making loans, handling trade financing and providing guarantees, and discounting bills and notes.  Most are also involved in the securities business, in underwriting and trading securities and managing bond and debenture issues, as well as in providing savings-account facilities.  The Mega International Commercial Bank assists with long-term financing for industries and projects, while the Export-Import Bank of the Republic of China and the Farmers Bank focus on trade financing and agricultural development, respectively.

 Foreign banking institutions have played an important role on the financial scene.  Foreign banks are essentially treated like domestic commercial banks; they are permitted to engage in trade financing, foreign-exchange dealings, private and corporate lending, and various kinds of trust businesses.  In order to build a greater overall market presence, many foreign banking institutions also concentrate on the development of consumer loan and credit card services.

Performance of Domestic Banks :-

The largest banks were Bank of Taiwan, Taiwan Cooperative Bank and Mega International Commercial Bank in terms of assets, while the largest banks in terms of the net income before tax for the first half of 2016 were Mega international Commercial Bank, Bank of Taiwan, and CTBC Bank Co., Ltd.

As of end-Jun. 2016, the domestic banks average capital adequacy ratio registered 13.03% was well above the regulatory requirement of 8.625%, indicating that capital adequacy for domestic banks kept satisfactory. Asset quality remained sound and the provisions for loans were sufficient to cover potential losses. The profitability for domestic banks remains stable for the first half of 2016 while liquidity kept ample with the liquidity ratio well above the regulatory requirement of 10%.

As of end-Jun. 2016, domestic banks total assets amounted to NT$44,790.6 billion increasing by NT$166.8 billion or 0.37% compared to end-Mar. 2016. Total liabilities and equities amounted to NT$41,524.1 billion and 3,266.5 billion increasing by NT$ 161.7 billion and NT$5.1 billion or 0.39% and 0.16%, respectively, compared to end-Mar. 2016. Domestic banks as a whole posed a net income before tax of NT$166.1 billion for the first half of 2016, decreasing by NT$ 3.5 billion or 2.06% compared to the same period of previous year.

List of Banks in Taiwan –

A)      Taiwan – Based Banks

·         Chunghwa Post

·         Bank of Taiwan

·         Bank of Taipei

·         Land Bank of Taiwan

·         Taiwan Cooperative Bank (includes the former Farmers Bank of China)

·         First Commercial Bank (zh)

·         Hua Nan Commercial Bank

·         Chang Hwa Bank

·         Citibank Taiwan

·         Shanghai Commercial and Savings Bank

·         Taipei Fubon Bank

·         Taipei Star Bank

·         Cathay United Bank

·         Export-Import Bank of the Republic of China

·         Bank of Kaohsiung

·         Mega International Commercial Bank

·         China Development Industrial Bank

·         Industrial Bank of Taiwan

·         Taiwan Business Bank

·         Standard Chartered Bank Taiwan

·         Taichung Bank

·         King's Town Bank

·         Bank of Taipei

·         Hwatai Bank

·         Taiwan Shin Kong Commercial Bank

·         Sunny Bank

·         Bank of Panshin

·         COTA Commercial Bank

·         Union Bank of Taiwan

·         Far Eastern international Bank

·         Yuanta Bank

·         Bank SinoPac

·         E.SUN Commercial Bank

·         KGI Bank

·         Taishin International Bank

·         Tachong Bank

·         Jih Sun International Commercial Bank

·         EnTie Commercial Bank

·         Chinatrust Commercial Bank

·         Chinfon Bank


B)      Mainland China – Based Banks -   Bank of China


C)      Foreign Banks