Sean Chen, chairman of the Financial Supervisory Commission, told the Financial Times that Taiwan still had too many banks in spite of attempts to reform the financial sector.
Former state banks in which the government has reduced its stake to below 50 percent were the most likely candidates to lead a new wave of consolidation, Mr Chen said.
Those banks will play a bigger role in any upcoming consolidation because they are still under “some government influence, which means they have the sense of social responsibility” to conduct mergers that would be “very healthy for the financial markets”, Mr Chen said.
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