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Minister urges UK firms to invest in banks' privatization

Minister of Finance Lin Chuan (林全) on Monday encouraged British firms to invest in the privatization of Taiwan's public banks at an investment seminar in London.

Speaking to nearly 200 executives of British investment and financial agencies at the seminar, Lin urged them to seize the business and cooperation opportunities between the two countries.

Lin said that the Ministry of Finance is slated to release late next year its holdings of government shares of all Taiwan's public banks, except for the Bank of Taiwan (台灣銀行), to allow for a greater degree of foreign ownership in domestic banks in line with a government privatization project.

Stressing that Taiwan is poised to extend foreign ownership in its banking sector to sharpen the domestic industry's competitive edge as part of its bid to build the nation into a regional financial hub, Lin said that relevant legislation has been underway to encourage mergers and consolidation among banks.

According to the finance minister, there are currently more than 50 banks in Taiwan, including 12 government-controlled ones that account for more than 60 percent of the domestic banking industry's assets.

However, he pointed out that profits posted by the public banks lag far behind those of private banks and that this is the reason behind the government's decision to launch the privatization plan to increase their profitability.

Council for Economic Planning and Development Vice Chairman Hsieh Fa-ta (謝發達) and Financial Supervisory Commission Secretary-General Huang Tien-mu (黃天牧) also gave speeches at the seminar.
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