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.