Taiwan State Banks Seek Pay Reform as Job Applications Slide

Bank of Taiwan, Land Bank of Taiwan and the Export-Import Bank of the Republic of China operate under Taiwan’s State-Owned Enterprise Administration Act, limiting their flexibility on compensation and benefits. Annual bonuses are capped at 4.4 months of salary, roughly half the level at other state-linked lenders. A shrinking working-age population and higher pay offered by private banks and technology companies are raising concerns about a widening talent gap.

Bank of Taiwan Chairperson Lyu Juh-fang said after the lender’s 127th anniversary event on May 20, 2026, that state-owned banks had repeatedly sought support from the Executive Yuan, Ministry of Finance and lawmakers for legal changes. Applications to Bank of Taiwan fell below 2,000 in 2025 and declined again in 2026. The lenders want enterprise-style management principles applied to pay, benefits and hiring so operating gains can be shared more directly with employees.