Chang: Other than the build-operate-transfer measures widely used by the government in the past, we are considering launching a private finance initiative, to provide funds for major capital -investments with private firms contracted to complete and manage the projects.
TT: Many have said that mergers led by state-controlled banks could help solve the “over-banking” problem in the banking sector and further enhance competitiveness. What is your view on this idea?
Chang: State-run banks should not be merged solely for the purpose of achieving greater scale and enhanced profitability, a point that is particularly true for Bank of Taiwan (台灣銀行) and Land Bank of Taiwan (土地銀行), which are important policy tools.
Even if the ministry remains a major shareholder in state-run banks, the managers of those institutions need to evaluate the feasibility of mergers and acquisition, because a merger of state-run banks will only take place when it offers tangible benefits for both parties.
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