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Bankers charged by Ministry of Finance for mismanagement

The Ministry of Finance has filed charges against 31 top officials of grass-roots financial institutions recently taken over by the government, the local Chinese-language media reported over the weekend, citing ministry officials.

Some bank managers could face jail terms of up to 10 years.

In September, a government directive instructed 10 major banks to take over the management of 36 grassroots financial institutions.

According to the report, the 10 banks completed an asset evaluation over the weekend and found that many of the credit cooperatives' accounts were actually dummy accounts.

In a meeting on Saturday, Minister of Finance Yen Ching-chang (顏慶章) confirmed that the total cost for taking over the cooperatives would cost the financial reconstruction fund NT$77.3 billion.

Originally the finance ministry estimated that total losses would reach NT$60 billion.

The losses will be paid by the financial reconstruction fund, which is similar to the Resolution Trust Company in US.

The Legislative Yuan passed legislation in late June to provide NT$140 billion for the fund, designed to help clean-up troubled and corrupt financial institutions.
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