The Impact of Changes in China's Economic and Financial Situation on Taiwanese Banking Industry (and Taiwanese Banking Industry's Countermeasures)

2017/12/1 上午 12:00:00

This study explores trends in China’s economy and financial and business reforms from two respects. First is the impact of important policies like China’s overall strategy and development, including the 2017 Government Work Report, a re-examination of structural supply-side reform, and seven major free-trade zones (FTZs), on Taiwanese banks. Second is the possible impact of major non-recurrent policies and events, mainly RMB devaluation risk, a housing bubble, state and private enterprise debt risk, strengthened regulatory measures, and Trump’s tax reforms. These hidden dangers may morph into systemic risks, so China has taken official efforts to alleviate them since 2017, regarding this as national-level matter. For Taiwan’s government, because cross-strait financial exchanges are increasing by day, risk evaluation and avoidance are becoming more important, therefore this study focuses on risk. Finally, this study clarifies possible risks for Taiwanese banks, and proposes relevant risk assessments and countermeasures for use the government to formulate financial policies, and for banks to form business plans.