Commercial and Industrial Bank of Taiwan Became the Largest Local Private Bank in Taiwan
As a result of the end of the First World War, the Tokyo stock market plummeted in 1920. The post-1920 economic slowdown and the Great Kanto Earthquake of 1923 caused economic depression in Japan. The financial industry in Taiwan was unprepared for the sudden Japanese economic decline and the Bank of Taiwan could do little to help. Commercial and Industrial Bank of Taiwan helped with 5 million yen and 2.5 million yen of non-performing loans from Hsin-Kao Bank and Chia-I Bank respectively, recognizing a loss of 3.1 million yen and finally completed an unconditional merger of the three to become the largest local private bank in Taiwan. On December 23, 1923, through a meeting, shareholders decided to reduce the capital by 6 million yen. The merger made it possible for Commercial and Industrial Bank of Taiwan to overcome financial difficulties and survive the financial crisis, which showed the economic aptitude of the bank.
