Cathay Financial's Lee Chang-ken: Government Should Encourage Bank Consolidation to Support Taiwanese Firms Globally

Central News Agency, Taipei, May 29. Cathay Financial Holdings President Lee Chang-ken said today that while the company monitors external opportunities, it will not pursue M&A for the sake of it. He observed that Taiwan's banking industry is relatively fragmented, with few banks holding a 20-30% market share. He suggested the government should encourage consolidation to help Taiwanese tech firms compete globally. During the Q1 earnings call, Lee noted that Chairman Tsai Hong-tu has directed subsidiaries to develop growth strategies. He emphasized that for Taiwanese tech firms investing billions of dollars in the U.S., no single local bank can handle the financing. To support companies like TSMC and MediaTek, banks need to reach a 15-20% market share to be competitive. Regarding the economic outlook, Lee remains optimistic, stating that as long as AI demand continues, Taiwan's economy and stock market will remain strong.