TT: Introducing banking reforms to strengthen the nation's overcrowded financial sector is another major task the ministry faces. Will the ministry be able to meet the goal of halving the number of state-run banks by the end of the year?
Lin: We are making an all-out attempt to promote banking mergers, but there are always risks, even though we hope to complete the task 100 percent. We are not pushing mergers just for the sake of merging, but to create momentum and boost competitiveness.
Pushing forward mergers of state-run banks is only a catalyst, as we hope this will stimulate private lenders to undergo corporate restructuring or seek merger targets to help internationalize the market.
TT: Indignant employees of state-run Taiwan Business Bank (台企銀), which is slated to open the tender for its share sale this weekend, have argued that the government should maintain control over banks such as theirs, which contribute to the economy by granting loans to small and medium-sized enterprises (SMEs). How do you respond to their appeal?
Lin: The public announcement on Taiwan Business Bank's share sale clearly stated that the buyer must maintain this business line and continue to serve SMEs. We want the bank to be profit-driven, so that it will benefit its shareholders while standing firm even in the face of fierce competition. Of course, employees of any given state-run bank will oppose mergers, but we have to consider whether their requests are reasonable.
TT: The Chinese Nationalist Party (KMT) still has some property it acquired by questionable means in the days of single-party rule. Will the government be able to retrieve these assets soon?
Lin: The KMT has agreed to return the assets, but the prices it offered are not reasonable. We suggest that it either sell the five movie theaters it owns based on market prices, which places their value at around NT$1 billion (US$30.84 million), or just give the theaters back to the government. Because there is no law covering this specific instance, we can only resort to moral persuasion. The KMT should know that possessing such disputed assets is not healthy for the party in the long run.
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