This study examines whether family engagement in banks leads to different operational practices, with a focus on loan portfolio diversification and tax aggressiveness. Using data from Taiwanese banks, we manually assess the family member data by identifying the number of key related parties disclosed, and apply the approach of Parise (2024) to identify potential family links within banks. Our findings show that family-run banks exhibit significantly greater loan diversification and have more conservative tax strategies compared to non-family banks. These results suggest that family engagement fosters long-term stability rather than short-term profit maximization in the banking industry.
