Taiwan’s financial sector will continue being improved and upgraded through a series of regulatory reforms enabling it to better access other Asian markets, Financial Supervisory Commission Minister Tseng Ming-chung said Sept. 2.
“The FSC will stage a meeting every six months with local business leaders to discuss measures aimed at helping Taiwan firms capitalize on potential business opportunities,” Tseng said.
“All FSC departments have been directed to respond to sector requests in a prompt and unambiguous manner.”
Tseng, who took over as FSC minister Aug. 1, reaffirmed the commission’s stance during a meeting with chairmen and vice chairmen of 16 local financial holding companies in Taipei City.
During the first gathering between the new minister and the business leaders, both sides focused on cross-strait banking, policy recommendation, as well as financial supervision and differential management.
According to Tseng, topics of special interest included cross-strait cooperation on banking supervision, as well as amendments to existing laws governing e-commerce, financial products and mainland China-bound investment.
“The FSC will roll out additional liberalization measures on the condition that the private sector strengthens its regulatory compliance and risk management efforts,” he said.
These measures should include adopting negative listings for business operations off-limit to local banks, and lifting the rule that mainland China-bound investment should not exceed 15 percent of a local bank’s net worth.
In addition to developing local market presence, Tseng urged firms to make greater inroads to other Asian economies through mergers and acquisitions or establishment of branches and subsidiaries.
Tseng said the commission fully supports such moves, and that the FSC Banking Bureau will hold a meeting next week to review initiatives in this regard.
The minister also called on local banks to pay greater attention to costs and risk controls in their day-to-day operations and refrain from cutthroat competition.
“The FSC will perform regular inspections and supervisory visits to ensure the banking sector conforms to existing regulations and remains on the healthy development track,” he said. (SFC-JSM)
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