Reflecting back to 2006, the strong U. S. economy and consistent, rapid growth in China and India contributed to the European and Japanese economies' growth re-emergence after years of stagnation. Energy prices were stable on the back of a steady geopolitical environment and secure oil supply. Strong stock market performances underpinned the global economy. Global economic growth for 2006 registered 3.9%, up from 3.5% in 2005, according to Global Insight, Inc.
In Taiwan meanwhile, private investments declined sharply due to higher industrial raw material prices worldwide, more expensive imported machinery and equipment, and tougher times for state-affiliated enterprises. Conversely, strong external trade figures contributed to total annual economic growth for 2006 of 4.62%, up 0.53 percentage point from 2005. Overall, 2006 saw better foreign trade than domestic consumption in Taiwan 's economy.
Looking into 2007, under the premise of steady international oil prices and interest rates, Global Insight Inc. predicted the global economy would expand only 3.5%. Taiwan private consumption was expected to grow, however, thanks to gradually subsiding credit card and cash card payment delinquencies and improved outlooks for the stock, real estate and labor markets. Private investments are also expected to increase as the government continues to promote major investment projects. Taiwan 's Directorate General of Budget, Accounting & Statistics of the Executive Yuan forecast the Taiwan economy would expand 4.30% in 2007, from the year earlier.
In recent years, Taiwan 's banking sector has had to cope with the fallout from credit card and cash card delinquencies, stagnant domestic consumption, consolidation and a rapidly evolving financial environment. To elevate operating efficiency, Far Eastern International Bank (FEIB) has strengthened risk management, improved asset quality, and consolidated our human resources, IT and marketing data and services. We have restructured within the bank into five Groups: Corporate Banking, Financial Markets, Consumer Banking & Credit Card, and Individual Banking . These Groups are support come directly under the Risk Management Department. The division into core business unit helps FEIB to enhance operating efficiency and bolster our already solid performance.
Going forward, we are focused on developing our major businesses, increasing our earnings capability, and maintaining good asset quality. Furthermore, harnessing the Group's resources and potential synergy, we aim to enhance cross marketing to drive organic growth and seek strategic alliances and mergers to generate new growth. Faced with the challenges of the future, we are a talented group of professional with a sincere and steadfast attitude, confident to offer clients the most professional financial services to create the highest value and satisfaction for our shareholders. |
