Taiwan’s banks are struggling in a tough domestic market, with some of the lowest net interest margins in the world and too many players fighting for a share of a relatively small pie. The pace of consolidation has slowed and observers say that there are not many opportunities for further consolidation of the 37 domestic banks when such a significant number are government owned.
Taiwan is over-banked and hugely competitive, with one executive describing the market as “cut-throat”, and another calling it “lousy”. “It’s a bare-knuckle bar fight,” says Mike DeNoma, CEO of Chinatrust Commercial Bank’s banking business, when discussing the Taiwanese banking market.
