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Taiwan's International Financial Competitiveness

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Category Sub-category Description Further information
Degree of internationalization Convergence with International Financial Reporting Standards(IFRS) With the international trend towards full adoption of IFRS, on May 14, 2009, the FSC announced the IFRS adoption roadmap, containing two-phased mandatory adoption of IFRS and early use of IFRS. Phase I companies, including the listed companies and financial institutions, except for credit cooperatives, credit card companies and insurance intermediaries, would be required to prepare IFRS financial statements in 2013, and they would also be permitted to apply IFRS in 2012 when meeting specific criteria and approved by the FSC. Phase II companies, including unlisted public companies, credit cooperatives and credit card companies would be required to prepare IFRS financial statements in 2015 and would be permitted to apply IFRS in 2013.
  1. Roadmap toward IFRS adoption in Taiwan
  2. Comparison between IFRS and Taiwan’s GAAP
Share of aggregate market capitalization held by foreign investors (stock exchanges; OTC markets) Statistical Table  
Foreign denominated bonds outstanding Statistical Table  
Operating revenues of overseas branch units (incl. OBUs) of domestic banks Statistical Table  
Pre-tax earnings of overseas branch units (incl. OBUs) of domestic banks Statistical Table  
Measures to bring market maturity up to international standards
  1. Implementing Basel II.
  2. Implementation of Basel
  3. Financial Resilience of Taiwan's Banking Sector
  4. Developing fixed income market.
  5. Allowed foreign investors to engage in non-hedge futures trading and trade via omnibus accounts, and launched three new USD-denominated products.
  6. Developing market for foreign denominated bonds.
  7. Implementing risk-based capital (RBC) system to strengthen insurer solvency.
  8. Taiwan ranks No. 1 globally for insurance penetration. For insurance density, Taiwan ranks No. 20 globally and No. 3 in Asia, putting us on par with global standards.
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Financial industry consolidation & foreign equity participation M&A deals since Sept. 2004

Foreign investment in the banking market

  
Ease of obtaining business loans Outstanding amount of SME loans by domestic banks Statistical Table  
Outstanding loans of domestic banks as percentage of GDP Statistical Table  
Bank soundness Avg. NPL ratio of domestic banks Statistical Table  
Avg. NPL coverage ratio of domestic banks Statistical Table  
Avg. capital adequacy ratio of domestic banks Statistical Table  
Avg. ratio of Tier I capital to risk-weighted assets among domestic banks Statistical Table  
Avg. ROA among domestic banks Statistical Table  
Avg. ROE among domestic banks Statistical Table  
Bank efficiency Bank assets as share of GDP Statistical Table  
Financial services output as share of GDP Statistical Table  
Credit cards in circulation Statistical Table  
Aggregate credit card debt Statistical Table  
Banking units per 100,000 population Statistical Table  
Stock market efficiency (ease of raising capital on stock market) Aggregate market capitalization (unit: NT$1 billion) Statistical Table  
Aggregate market capitalization as share of GDP Statistical Table  
Stock market trading volume Statistical Table  
Stock market turnover rate Statistical Table  
P/E ratio Statistical Table  
Domestic companies with an exchange listing Statistical Table  
Domestic companies with an OTC listing Statistical Table  
Share of aggregate market capitalization held by foreign investors Statistical Table  
Stock index volatility Statistical Table  
Measures to strengthen protection of shareholders equity
  1. Implementing corporate governance.
  2. Tightened measures to prevent insider trading.
  3. Strengthened the powers of the Securities and Futures Investors Protection Center.
  4. Strengthened management of the use of proxies at financial institution shareholders meetings.
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Measures to implement financial institution transparency
  1. For more information, see the section on "Harmonization of ROC accounting standards with international standards."
  2. Itroduced requirement for financial institutions to make periodic disclosures of financial and operational information.
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Insurance efficiency Insurance density Statistical Table  
Insurance penetration Statistical Table  
Corporate Governance Legal provisions to promote corporate governance, and implementation thereof
  1. Amended Securities and Exchange Act to provide explicit legal basis for implementation of corporate governance.
  2. Implementing system for independent directors and audit committees.
  3. Implementing Corporate Governance Assessment System.
  4. Oversaw formulation by the Taiwan Stock Exchange and the GreTai Securities Market of "Corporate Governance Best-Practice Principles for TSEC/GTSM Listed Companies" suited to conditions in Taiwan; encouraging domestic enterprises to improve corporate governance
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Enhancement of market transparency
  1. Established a "Market Observation Post System" to improve market information transparency.
  2. Working to harmonize ROC accounting standards with international standards.
  3. Oversaw efforts of the Taiwan Stock Exchange and the GreTai Securities Market to ensure that listed companies make prompt disclosure of material information, and that they make regular disclosure of financial information.
  4. Will eventually establish an online watchlist for information on companies with financial irregularities
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Table of Financial Holding Companies Established Financial Holding Companies in Taiwan  
Visitor： 71074 　 Update： 2021-04-16