Evolution of the financial system involves continual institutional changes for reform purposes. However, reform experiences differed considerably from one country to another. Why is it that some countries can effectively implement reforms to foster successful development while others fail to do so? This study takes a first step in answering this question. It aims to explain the variations of financial reform experience in terms of informal institutional influence and highlight the importance of governance in shaping the reform outcome. The thesis studies governance characteristics that influence Taiwan’s banking evolution and examines the development of both formal and informal institutions. It argues that development of Taiwan’s banking sector has been path-dependent and significantly influenced by informal institutions, which held back its recent reform progress.
|Date of Award||2012|