Taiwan Financial Industry- Challenges and Opportunities.pptVIP

Taiwan Financial Industry- Challenges and Opportunities December 2006 Sophia Cheng Research AnalystMerrill Lynch (Taiwan) +886 2 2376 3732 sophia_cheng@ Taiwanese banks: low valuation in the region GDP growth: Taiwan lags other emerging Asian markets Credit Penetration: Total Loans as a Percentage of GDP (%) Deposit Penetration: Total Deposits as a Percentage of GDP (%) Too much surplus liquidity Consumer credit outgrow corporate loans Margins remain thin Three areas to grow Non-loan business gaining importance Taiwan households hold US$1.3tn assets Wealth Management FX/Derivatives FX –