Sherry Lin (林淑娥), Credit Suisse's analyst who tracks Taiwan's and China's financial industries, said that local banks would be deadlocked if they were not allowed to expand across the Taiwan Strait.
"Banks will see limited growth if they cannot follow their clients who have been migrating to China in droves," Lin told the Taipei Times in an interview last month.
The troubles local banks face are unlikely to disappear soon, because of
strong international competition and a head-to-head price war stemming from
sectoral fragmentation in the absence of sufficient consolidation, McKinsey
warned.
The consultancy suggested that local financial players reposition themselves
and called on the government to expedite market liberalization and allow
domestic firms to branch out into overseas markets.
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