Asian banks have strived to improve their asset quality since the 1997 financial crisis. I see solid profit outlook for Asian banks. |
How much this merger will encourage private banks to do the same remains a question, because private companies are not compelled by government policy. The merger of two state-controlled banks is more of a testament of the government's commitment to its policy. |
This indicates the two companies might have room for further cooperation as each of them has said they want to be the acquirer. M&A activities have been accelerating in Taiwan. |