本篇論文主要使用2017-2022年512筆資料來探討台灣本土銀行的資金成本是否會受政府監管影響。Miller（1995）認為政府監管增加銀行的權益融資將使銀行風險下降，進而降低銀行的資金成本。然而，Admati（2013）提出政府對於銀行的資本規範不會對銀行的價值產生影響，因為此規範對銀行產生的正負效益會彼此抵消。我使用盈餘預測和銀行特定的債務成本來測試台灣的銀行的資金成本如何受政府管制影響。我發現，儘管增加權益融資會降低權益成本和債務成本，但由於投資組合轉移的抵消，且通常權益成本較債務成本高，因此最終不會影響資金成本。然而，當我加入政府對銀行的補貼因素，包括大到不能倒及存款保險的保護時，發現大到不能倒銀行的資金成本會隨著第一級資本上升而下降，而存款保險的保護則沒有顯著影響。總體而言，政府監管不會對銀行的資金成本造成影響。

Using a sample of 512 Taiwan bank-year observations from 2017 to 2022, my paper examines whether the cost of capital is affected by government regulations. Miller (1995) argues that equity funding can reduce a bank’s risk and therefore its cost of capital. However, Admati et al. (2013) contend that the benefits of increased capital requirements can outweigh their costs and the cost of capital can remain unchanged because the cost of equity is generally higher. I test the two competing arguments by examining analyst earnings forecasts and bank-specific cost of debt. I find that although equity funding decreases both cost of equity and cost of debt it has no effect on cost of capital. The intuition is that the offsetting effect results from the portfolio’s shifting weights towards equity and the cost of equity is generally greater than the cost of debt. However, I find that the cost of capital for too-big-to-fail banks decreases as Tier 1 capital rises. The deposit insurance seems to have no effect on the cost of capital. Overall, my results suggest that government regulations the costs of capital in Taiwan-based banks.

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