An Empirical Study On The Synergy Of Financial Holding Company

With the development of financial globalization, competition in the finance industry has gone beyond national borders. Advanced countries all over the world one by one amend their regulations, allowing financial institutions to enhance their competitiveness by crossing-selling under the mode of financial holding companies. It has been six years since the first development of financial holding companies in 1998. It has only a three-year development in Taiwan, and thus financial holding companies have been looking for proper ways of merger and integration. By the ways of establishing financial holding companies and merger, financial industry expects to better competitiveness and profit capacity through cross-selling, scale economy, and cost down. Financial holding companies base their niche on the synergy of financial companies. Therefore, financial holding companies are facing a greater challenge of effective integration of its subsidiary companies, which brings about effectively distribution of capitals, reduction of operational costs and sustainable development for financial holding companies.This paper investigates the synergy of financial holding company by a case study of Taiwan Fubon Financial Holding Company. This paper states the problems they came across in their operation, solutions to these problems, and their suggestions. This paper concludes the critical task to enhancing a financial holding company's synergy is risk management, which help successfully reach the goal of sustainable management.