The Government of Taiwan wants to reduce the number of state-run banks from 12 to six by the end of this year, and interestingly, senior officials said it would look to form a foreign bank partnership in its efforts to build an ABS franchise. No names have been mentioned thus far, and it would come as something of a shock if a foreign investment bank would be willing to get involved in such a venture.
Securitization may only be three years old in Taiwan, but it is already apparent that foreign firms are being squeezed out. "I would be very surprised if any foreign house would give their technical expertise for free to a Taiwanese bank," commented one Asian ABS veteran. "The market is ultra competitive and fees are dropping fast, so much so that I don't know if any foreign investment bank will be that active next year."