Taiwan Experts Urge Faster Consolidation of State-Controlled Financial Firms

Taiwan’s state-controlled financial groups carry policy mandates but face government budgeting, legislative scrutiny and rigid personnel rules that can slow capital raising, technology spending and recruitment. That has left them struggling to match private-sector rivals in digital services and product innovation. The renewed case for consolidation is therefore about more than scale: policymakers must combine capital, technology and governance while giving management enough flexibility to invest, innovate and compete.

On May 20, 2026, the Ministry of Finance told parliament it was advancing a four-way merger of asset managers owned by First Financial, Mega Financial, Taiwan Cooperative Financial and Hua Nan Financial. The combined business would oversee about NT$364.9 billion, yet hold only roughly 3% of the market. In a separate May 29 vote, the state-backed bloc won eight of IBF Financial Holdings’ 15 board seats and installed Chang Chao-shun as chairman. No broader merger target, price or timetable has been announced.