This project explores the impact of the Asian-Pacific economic integration on the financial services industry and finds how Taiwan’s financial services institutions should response and develop, as well as what Taiwan’s financial supervisory unit should do to help financial institutions. Considering the strict competition relationship between Taiwan and South Korea, this report pays more attention on examining EU- Korea FTA. Regional economic integration impacts on the financial services industry occurs through indirect and direct channels: the former one is via the influence of reduction in tariffs on general industries (i.e. bank’s customers), which results in the increase of outward investments of general industries and then the financial institutions themselves. The latter one is through the increase of market access opportunities for financial industry involved in regional economic integrations. The advantage of Asian-Pacific economic integration on Taiwan’s financial industry is, through enhancing economic growth and increasing investment opportunities in the region, more business opportunities are brought for Taiwan’s financial institutions. However, the disadvantage is, since Taiwan participated less in Asian economic integration, our financial institutions have to face higher market entry barrier comparing with other regional countries.
By investigating the differences between the financial specific commitments in WTO and those in the various FTAs in the region, the disadvantageous treatments and the challenges for Taiwan’s financial industries are found. Coordinated measures for our financial sector and supervisory units are finally provided.