Abstract
With the trend of capitalized and universal banking, the need for consolidation
to remain competitive in the global market is imminent. In order to accelerate
the rationalization of financial institutions, resolve the problem of overcrowded
banking sector, and increase the operational efficiency of financial institutions,
the government has have the Amendment to the Banking Law, the Merger Law of
Financial Institutions and the Financial Holding Company Law passed recently.
Under the Financial Holding Company Law, existing financial institutions, which
are currently focused on particular business categories, can get involved with
the businesses of other financial fields through reinvestment or shareholding
in other financial institutions.
Faced with such trends as economic
globalization, market liberalization, and apid changes in financial industries'
structure, how a well-balanced enforcement policy in a sense to include the
consideration of not only the maintenance of a fair and competitive market but
also the construction of more practical and industry-specific justifications
and approval criteria for mergers of financial institutions becomes the top
priority. Therefore, in this research project, we attempt to explore the evolvement
of Taiwan's financial industry, the development of related regulations, the
market structure, behavior, and its performance. We then proceed to define the
financial geographical market and the product market. More specifically, we'll
rely on the experiences from the United States, European Union, Japan, and Canada
to examine the approval criteria for mergers of financial institutions. Via
conducting a legal analysis on these specific provisions, tentative suggestions
will be derived as references for the competition policy competent authority.