There is a widespread perception that bank privatization promotes operating performance of public banks, and that subsequently this stimulates economic growth. Consequently, in the last two decades bank privatization has become a crucial component of financial reform. Followed the government announced financial liberalization as guidelines for Taiwan's future economic development in 1984, bank privatization was adopted in 1989. However, the banking sector was not privatized until 1998. This article studies the promotion and implementation of bank privatization policy in Taiwan and its evolution over the last two decades. This attempts to explore why privatization agenda is adopted and why privatization is proved so difficult to implement. Also, the reasons for the sudden speeding up of bank privatization in the wake of the Asia crisis are explored.