Taiwanese lawmakers reject state-bank merger bid

Finance committee doubts Bank of Taiwan and Land Bank union will create synergy.

Lawmakers are concerned on the overlapped business models of Bank of Taiwan, a subsidiary under Taiwan Financial Holding, and Land Bank.

Chinese Nationalist Party (KMT) Legislator Alex Fai said Bank of Taiwan's strengths are identical with Land Bank's that renders the merger with the state-run bank useless as it would not help create synergies, stated in a report in Taipei Times.

The proposal, raised by KMT Legislator Lai Shyh-bao, had recommended that the Ministry of Finance re-evaluate the feasibility of Taiwan Financial acquiring Land Bank. A request by Premier Wu Den-yih that mergers of state-run banks be accelerated spurred the ministry to propose the merger.

Finance Minister Lee Sush-der said that he agreed with the legislature's decision to keep Land Bank independent from the state-run financial service provider.