Taiwan's Prominent Bank Merger Confirmed! 'Transfer of 103 Branches Nationwide' — Taishin Financial Acquires All Shares, Official Integration Timeline Announced

The Financial Supervisory Commission (FSC) has officially approved the share-swap merger between Taishin International Commercial Bank and Taiwan Shin Kong Commercial Bank, with Taishin Bank as the surviving entity and a tentative merger effective date of January 1, 2027.

Upon completion, the merged entity—New Taishin Bank—will have total assets of approximately NT$4.7 trillion, rising to 7th place among domestic commercial banks in Taiwan by asset size. The combined domestic branch network will reach 204 locations, ranking second only to the Cooperative Bank of Taiwan, making it the second-largest physical banking network in the country. This merger strengthens Taishin-Shin Kong Financial Holding's strategic vision of building a comprehensive financial services group.

According to statistics from the FSC’s Banking Bureau as of March 2024, Taishin Bank had total assets of approximately NT$3.3 trillion and operated 101 branches, ranking 12th in market share. Taiwan Shin Kong Bank had total assets of around NT$1.4 trillion and 103 branches, ranking 17th.

The combined entity will achieve total assets of NT$4.7 trillion, jumping to 7th place in market share, with paid-in capital reaching NT$170.3 billion. The physical branch network will expand to 204 locations, second only to the Cooperative Bank, establishing a strong competitive advantage through extensive nationwide coverage.

Regarding transaction structure, Taishin Financial Holding and Shin Kong Financial Holding completed their holding company-level merger on July 24, 2023, rebranding as 'Taishin Shin Kong Financial Holding Company,' which now fully owns both Taishin Bank and Taiwan Shin Kong Bank as subsidiaries.

For the bank-level integration, both banks held board meetings (exercising shareholders' meeting authority) on June 4, 2024, approving a merger plan in which Taishin Bank will issue new shares and pay cash as consideration. Following the FSC’s formal approval on April 4, 2024, the integration process will advance through system and operational alignment, targeting full integration by January 1, 2027.

System integration risks are under close scrutiny, especially given past incidents such as accounting errors during the integration of Taishin Securities and Yuan Fu Securities. The stability of core banking system migration and potential service disruptions are major public concerns.

The FSC’s Banking Bureau emphasized that core system changes have wide-ranging impacts and require rigorous oversight. Banks must follow guidelines from the Association of Banks of Taiwan, ensuring thorough pre-implementation planning, in-process supervision, and post-incident contingency plans. Most banks set a maximum tolerable downtime of around two hours; exceeding this triggers immediate activation of backup systems. The FSC will closely monitor integration progress to safeguard consumer rights.

Regarding future outlook, Lin Wei-Chun, CEO of Taishin Shin Kong Financial Holding, stated that the merger enables the group to offer comprehensive financial services across banking, insurance, securities, and asset management. Subsidiaries are actively developing AI-powered fraud detection systems and elderly care solutions.

Lin expressed optimism about Taiwan’s economic momentum, citing vibrant capital markets and steady loan growth as signs of robust economic activity. On credit risk management, the group will maintain a prudent and conservative approach, pursuing business growth while upholding asset quality.