First Bank Urges Faster State-Backed Consolidation of IBF Financial

A dispute over executive pay and corporate governance at IBF Financial Holdings has revived debate over Taiwan’s long-delayed consolidation of state-backed financial institutions. First Bank said combining public-sector financial groups could create greater scale, broaden customer reach and improve profitability, helping government-linked firms compete more effectively with larger privately controlled rivals.

First Bank recently urged the government to use the controversy as an opportunity to accelerate a government-led merger involving IBF Financial. The proposal calls for integrating resources across banking, bills finance and internet-only banking subsidiaries to generate cross-selling opportunities, eliminate overlapping costs and strengthen economies of scale. No transaction value, ownership structure or timetable has been announced.