An Analysis and Comparison of the Structure of Cross- Business Organization for Financial Industry – Financial Holding Company vs. Universal Bank
Date Issued
2006
Date
2006
Author(s)
Che, Johnson
DOI
zh-TW
Abstract
Abstract
In the dynamic world of today, modern financial institutions are increasingly more competitive and their services more versatile. In order to survive the ever-changing business environment, most major financial institutions have followed the prevalent trend of merger and acquisition to strengthen their competitiveness. Even so, financial institutions around the world have parted their cross-business structure into two main models: Universal Bank of the European region, and the Financial Holding Company of the US and Japan. This paper will first discuss related publications and the quantitative aspect of selected financial institutions for a general performance evaluation of cross-business structure of both Universal Bank and Financial Holding; and then analyze the various qualitative aspects of Universal Bank and Financial Holding Company, through the eyes of industry professionals, to provide additional statistics to the compatibility of both cross-business structures with added scale and scope as the basis of a intensive examination of the advantages and disadvantages of Universal Bank and Financial Holding Company.
Research findings:
1. Currently available studies and publicly obtained financial information of the industry tend to rate Universal Banks slightly more advantageous than Financial Holding Companies.
2. Data obtained from an exclusively designed survey for this paper, which materialized financial industry professionals’ insight on six intangible aspects of the differences between UB and FHC, reveals a preference for Financial Holding Companies.
Policy implication:
1. This research concluds that both Financial Holding Company and Universal Bank have their strong points. Therefore it is suggested that the government develop a multi-axles policy in which to allow each financial institution to choose its most advantageous cross-business structure. At present, the discussion of a new “Financial Service Law" is hoped to give Taiwan financial industry more choice and freedome as suggested.
Subjects
金融機構跨業經營架構
FHC
Universal Bank
Type
thesis
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