The Supervision of Subsidiary Banks of Foreign Financial Institutions in Taiwan
| Autor: | Chen, Yi-Fu, 陳奕甫 |
|---|---|
| Rok vydání: | 2014 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 102 The recent establishments of local subsidiaries of the foreign bank groups in Taiwan unveil several supervision issues. These groups regard “subsidiary” merely a legal form, as well as “branch”, of foreign market access. Hence, the parent bank highly controls the operation of the subsidiary banks, ranged from the compositions of its board of directors, business policies and business scopes taken. Such strong dependency to the parent group, e.g. internal funding market and shared service provided by the group, bring the subsidiary bank potential fragility, and may harm the local financial market if the parent group fail or incapable to provide certain critical service continuously. Generally, shareholder’s limited liability of corporate entity prevent parent bank, the single shareholder of the subsidiary bank, from further liability. However, the policy purpose to maintain the soundness of the financial market shall be taken into consideration when applying such principle. The research suggests competent authority to adopt several supervision measures weighted to the systematical importance of foreign bank subsidiaries. Firstly, amend the Financial Holding Company Act to strength foreign financial groups’ obligations to their local subsidiaries. Meanwhile, the amendment of the act shall apply only the local subsidiaries of the groups to clarify the legal jurisdiction and the principle of home supervision. Secondly, to ensure the subsidiary bank could independently provide critical services when deemed necessary. The research agrees the shared services and internal funding market could increase economic efficiency within global financial groups, whilst the interruptions also render certain risks to the host economies. Accordingly, when parent group fail or incapable to provide certain functions, the subsidiary bank shall provide such services continuously and self-sustainingly. The research also urges the further supervision coordination with foreign supervision authorities could fulfill the responsibility of host supervision and therefore ultimate goal of prudential consolidated supervision. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
| Externí odkaz: |
|