MOF to name restructured banks

Financial reform dominated the legislature's interpellation session yesterday as Premier Yu Shyi-kun asked the Ministry of Finance to reveal the names of troubled banking institutions within two weeks.

"Bound by rules, the government cannot disclose the identities of banks that are being restructured," the premier said, answering a question from DPP lawmaker Luo Wen-jia (羅文嘉).

"But I promise to make them known once the restructuring process is over." Yu then ordered Minister of Finance Lee Yung-sen (李庸三) to publish information about the 44 financial institutes for which the financial restructuring fund is being used. "Publish within two weeks the names of those banks that have gone through restructuring," the premier said.

Wary of any potential fallout, Lee was a bit vague when he agreed to carry out the command, promising to do so "as long as the rights of the banks' clients will not be compromised."

While agreeing on the need to reform the nation's financial system, lawmakers have debated the merits of the methods being employed by the government.

Earlier, the finance ministry said the government's Financial Restructuring Fund needs another NT$910 billion to get the overall ratio of non-performing loans to below 5 percent within two years.

The fund has already spent nearly NT$100 billion in the last year to bail out troubled banks, leaving it with a balance of NT$40 billion.

"The proposed increase will take the fund's over-all size up to NT$1.05 trillion, or 185 times the annual budget proposed by the [Cabinet-level] Council for Cultural Affairs," Luo said. "The government cannot continue making taxpayers pick up debts left by unscrupulous bankers who continue to do business and enjoy luxury lives in China."

The DPP legislator was alluding to Wang Yu-yun (王玉雲), who has been seen touring the Chinese resort of Hengzhou, unruffled by the massive debt of his Kaohsiung-based Chung Shing Commercial Bank, which stands at over NT$80 billion.

"The people have the right to know who are plundering them of their money," Luo said, urging the Cabinet to amend the banking rules where necessary to deprive dishonest bankers of any legal protection.

The Council of Grand Justices barred authorities from revealing the name of any financial institution suspected of irregularities before the probe is finished, the finance minister said.

Luo, however, said he will keep pressuring the government during the forthcoming budgetary review.