Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 07TAIPEI1963, Big Taiwan State-owned Banks to Merge

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07TAIPEI1963.
Reference ID Created Released Classification Origin
07TAIPEI1963 2007-08-28 06:07 2011-08-23 00:00 UNCLASSIFIED American Institute Taiwan, Taipei
VZCZCXRO1670
RR RUEHGH
DE RUEHIN #1963/01 2400607
ZNR UUUUU ZZH
R 280607Z AUG 07
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 6549
RUEATRS/DEPT OF TREASURY WASHDC
INFO RUCPDOC/USDOC WASHDC
RUEHBK/AMEMBASSY BANGKOK 3800
RUEHBJ/AMEMBASSY BEIJING 7176
RUEHUL/AMEMBASSY SEOUL 8853
RUEHGP/AMEMBASSY SINGAPORE 6978
RUEHKO/AMEMBASSY TOKYO 9017
RUEHML/AMEMBASSY MANILA 0129
RUEHJA/AMEMBASSY JAKARTA 4122
RUEHKL/AMEMBASSY KUALA LUMPUR 3802
RUEHHI/AMEMBASSY HANOI 3374
RUEHBY/AMEMBASSY CANBERRA 4580
RUEHWL/AMEMBASSY WELLINGTON 1854
RUEHHK/AMCONSUL HONG KONG 8430
RUEHGH/AMCONSUL SHANGHAI 1313
RUEHGZ/AMCONSUL GUANGZHOU 0496
UNCLAS SECTION 01 OF 02 TAIPEI 001963 
 
SIPDIS 
 
SIPDIS 
 
STATE PLEASE PASS USTR 
STATE FOR EAP/RSP/TC, EAP/EP 
USTR FOR ALTBACH AND STRATFORD 
USDOC FOR 3132/USFCS/OIO/EAP 
TREASURY FOR OASIA/TTYANG 
TREASURY ALSO PASS TO FEDERAL RESERVE/BOARD OF 
GOVERNORS, SAN FRANCISCO FRB/TERESA CURRAN, AND NEW YORK FRB MARI 
BOLIS 
 
E.O. 12958: N/A 
TAGS: EINV EFIN ECON PINR TW
SUBJECT:  Big Taiwan State-owned Banks to Merge 
 
REF: (A) TAIPEI 336 
 
1.  SUMMARY:  Taiwan announced a three-year plan to merge the 
operations of the three largest state-owned banks into one financial 
holding company.  The world ranking of the new firm's banking unit 
will move up to 89th, and its market share in Taiwan will increase 
to 18%, well ahead of the next largest bank's share of less than 
10%.  The plan is a step forward, but it will not reduce the public 
sector's control of the financial sector.  One wonders if this new 
entity will keep its world ranking for long if it remains a 
state-owned enterprise.  END SUMMARY. 
 
Bank Consolidation Plan Gets the Green Light 
-------------------------------------------- 
 
2.  On August 15, the Executive Yuan formally approved a three-stage 
financial consolidation plan submitted by the Ministry of Finance 
(MOF).  The plan calls for the MOF to set up by the end of this year 
a new state-owned entity called Taiwan Financial Holding Company 
(TFHC), which will comprise three state-owned banks - Export-Import 
Bank of China (EIB), Land Bank of Taiwan (LBT), and Bank of Taiwan 
(BOT).  In July, BOT had already merged with another state-owned 
bank, Central Trust of China (CTC) (reftel).  As part of the 
reorganization, TFHC will set up two subsidiaries, one transformed 
from CTC's life insurance department and the other a merged CTC and 
BOT securities operation.  The three banks, however, would initially 
be managed independently. 
 
3.  Prior to the end of 2009, however, BOT will merge with EIB, with 
the new entity still called BOT.   EIB's insurance department will 
be split off and merged into the TFHC's insurance subsidiary.  LBT's 
securities department will merge into TFHC's new securities firm. 
By the end of 2010, the enlarged BOT will merge with LBT, with the 
new entity's name remaining BOT. 
 
4.  As part of the plan, the MOF guaranteed the 14,200 bank 
employees there would be no layoffs for at least three years.  These 
employees have seen themselves as civil servants, but after the 
reorganization, TFHC operations will no longer be regulated by the 
budget, and civil service rules and regulations will no longer 
apply.  Salary caps will be removed for top managers for example. 
Government bureaucrats are hoping that the new entity will operate 
more like a private company. 
 
One of the World's 100 Largest Banks 
------------------------------------ 
5.  The MOF projects that after the merger, TFHC's new banking 
entity will, in terms of assets, be ranked 89th in the world.  This 
puts it larger than Singapore's United Overseas Bank (ranked 102nd), 
but still smaller than South Korea's Shinhan Bank (ranked 82nd). 
The new banking entity's assets will increase to US$158.8 billion, 
and it will have 308 branches, including 16 overseas.  Its market 
share in terms of loans and deposits will rise to 19%, far higher 
than any other bank in Taiwan, the next largest having market share 
of below 10%. 
 
Is Bigger Better? 
----------------- 
 
6.  The MOF asserts the planned merger will reduce costs and 
increase efficiency.  The firms will also bring different strengths 
to the new bank.  CTC, prior to July, was Taiwan's sole insurance 
provider to public employees and the major public procurement 
contractor.  BOT is the leader in corporate banking and foreign 
exchange services, and LBT is the largest in the mortgage, real 
estate trust, and securitization service supplier.  EIB specializes 
in financial services for overseas trade and investment.  The merged 
 
TAIPEI 00001963  002 OF 002 
 
 
institution should continue to dominate all of these sectors. 
 
Or Just Bigger? 
--------------- 
 
7.  Some financial observers in Taiwan have expressed concern that 
TFHC will become a new financial giant that banks will have 
difficulty competing with.  One analyst of a foreign bank disagreed, 
however, noting that he expected the larger state-owned entity to be 
just as inefficient as the banks it absorbed. 
 
COMMENT 
------- 
 
8.  This plan is a political compromise and it shows.  By not 
privatizing the institutions and guaranteeing no layoffs, much of 
the political opposition was removed, allowing the consolidation to 
move forward.  It may also, however, have removed the chance for the 
new bank to compete on an equal footing with its rivals.  It will 
indeed be bigger, but it is unlikely to outmaneuver nimble 
non-government competitors who will also be seeking to serve an 
increasingly discerning market. 
WANG