“Taiwan’s fragmented banking sector, with its comparatively low profitability, is another weak point in its credit fundamentals,” Tan said.
He added that the local banking system is considered less healthy than those in most economies in the AA category.
In response, the finance ministry conceded the financial market is overcrowded, but said that domestic banks can lift their competitiveness through mergers and other remaking efforts, rather than relying on government funds to stay alive.
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