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The study mainly enphase on the financial point of view for judging the performance difference before and after the merge between ”Chiao Tung Bank” and “The International Commercial Bank of China” .Evaluate the change in financial performance by using the analysis method ”CAMEL” to see if the bank merger phenomenon result in a better performance. The samples selected in this research—The International Commercial Bank of China and Chiao Tung Bank. Both banks have been proud of their longtime histories of outstanding track records in our country, merging into ”Mega International Commercial Bank”. The study divided into 2 section, from year 2002 to year 2005(before merger) and the year 2007(after merger),exclude the year 2006(merger occured).To ovserve the possible factor result from the system variation and how they may effect the operation efficiency.
This research end up with the following conclusion：
(I)using the “CAMEL” analysis method to discuss the variety of financial performance relating to bank merger in 12 aspects. Financial Asset quality、Management ability、in Liquidity assets the proportion of time deposit and demand deposit is obviously improved. In the profitability analysis, ROA remain unchanged, but the capital adequacy ratio、ROE and the liquidity rate and the Deposit-loan ratio regressed. In general, the Capital adequacy 、Asset quality、Management ability、Earning ability and Liquidity of Mega Bank(after merger),the financial stander is better than other local bank in Taiwan.
(II)Although the asset structure and business operation of both banks subject to this research are in the same banking industry. Their different specialty contribute to a complementary effect. Let’s compare Chiao Tung Bank with The International Commercial Bank of China. Chiao Tung Bank transforming from a licensed bank for industries, development, and a state-controlled bank engaged in loan extensions for medium- and long-term development, innovation and guidance investment (equity investment), and venture capital ever since. And The International Commercial Bank of China was designated as a licensed specialized bank for international trade and foreign exchange engaged in general commercial business. In short the above mentioned banks are complementary in banking business.
(III)“Bank Merger” is a globalization phenamona. And in order to achieve the professional operation ability and increase international competition. Banks merge in Taiwan only in this way, one can manage to survive in the competitive financial environment.
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