Premier-designate names ministry of finance choice

Premier-designate Yu Shyi-kun named a veteran state-run banking official to head the Ministry of Finance yesterday.

Yu's choice, Lee Yung-san (李庸三), is chairman of the International Commercial Bank of China (中國商銀) and the Bankers' Association (銀行公會).

Lee will replace Yen Ching-chang (顏慶章), who has been asked to be Taiwan's first representative to the WTO in Geneva.

The new finance minister will have a tough road ahead of him, including pushing through further financial reforms and putting teeth into the government's plan to rescue an inefficient banking system that is buried in a record levels of bad loans.

Pundits are mixed on whether he is up to the task.

"Lee is a senior banker with a strong academic background. I think he is a good candidate for the post," said Chou tien-chen (周添城), an economics professor at National Taipei University.

With a PhD in economics from the University of Wisconsin, Lee has extensive experience in academic and financial circles. His previous titles include director of Institute of Economics at Academia Sinica, economics professor at National Taiwan University, director general of the central bank's economic research department, president of Chiao Tung Bank (交銀), and chairman of the Farmers' Bank of China (農銀).

He is weak in some areas, a professor said.

"Lee has extensive experience in the banking field, however, he lacks practical experience in public finance and taxation," said Norman Yin (殷乃平), a professor of finance at National Chengchi University.

The main tasks for finance minister are to oversee the taxation departments and the financial industry, including the securities market. Another problem is that Lee has plenty of experience as a banker, but little experience as a government regulator.

"Lee is used to being regulated as a banker. Now he has to learn how to regulate his former peers," Yin said.