President Chen Shui-bian (
He said using the issue as a political tool only impeded reform.
While there was much room for improvement, the direction of the second stage financial reform was correct and the intention was righteous, he said.
"To continue the reform is necessary," Chen said in a speech at the opening of an international forum in Taipei on economy, finance and accounting. "The second financial reform did not fail. It just hasn't succeeded yet."
Chen said what concerned him most when he came to office in 2000 was not China but a possible financial crisis.
The previous administration had allowed the number of banks and branches to increase dramatically between 1993 and 2000, Chen said. Fierce competition among banks fueled the alarming non-performing loans (NPL) ratio, he said.
Six financial-related bills were enacted in 2001 to pave the way for the first wave of financial reform. In August 2002, the government set the goal of lowering the NPL ratio to 5 percent and raising the average capital adequacy ratio (CAR) to 8 percent within two years.
The goal was achieved ahead of time, with the NPL ratio down to 2.32 percent and CAR up to 10.11 percent.
Following the Economic Development Advisory Conference in 2001, the government decided to push a second wave of financial reform, including overhauling the credit departments of farmers' and fishermen's associations and establishing the Financial Monitoring and Management Committee in July 2004, Chen said.
In October 2004 the government set four goals for the second reform phase -- to have three financial institutions with individual market shares of at least 10 percent, halve the number of state-owned banks to six, halve the number of financial holding companies to seven and have at least one domestic financial institution operated by a foreign entity or listed overseas.
Chen said he hoped financial issues could be separated from politics and that economic issues were not used as political tools to deter financial reform.
In other news, Chen solicited opinions from foreign experts on whether to designate Oct. 25 as the nation's independence day. He said he would like to know what the National Committee on American Foreign Policy thought.
Committee president George Schwab said they would be happy to offer opinions off the record.
The idea was proposed by Bruce Herschensohn, a Pepperdine University professor during a meeting with Chen on Tuesday.
Also see story:
Analysts skeptical on bank reforms
LOOKING NORTH: The base would enhance the military’s awareness of activities in the Bashi Channel, which China Coast Guard ships have been frequenting, an expert said The Philippine Navy on Thursday last week inaugurated a forward operating base in the country’s northern most province of Batanes, which at 185km from Taiwan would be strategically important in a military conflict in the Taiwan Strait. The Philippine Daily Inquirer quoted Northern Luzon Command Commander Lieutenant General Fernyl Buca as saying that the base in Mahatao would bolster the country’s northern defenses and response capabilities. The base is also a response to the “irregular presence this month of armed” of China Coast Guard vessels frequenting the Bashi Channel in the Luzon Strait just south of Taiwan, the paper reported, citing a
A total lunar eclipse, an astronomical event often referred to as a “blood moon,” would be visible to sky watchers in Taiwan starting just before midnight on Sunday night, the Taipei Astronomical Museum said. The phenomenon is also called “blood moon” due to the reddish-orange hue it takes on as the Earth passes directly between the sun and the moon, completely blocking direct sunlight from reaching the lunar surface. The only light is refracted by the Earth’s atmosphere, and its red wavelengths are bent toward the moon, illuminating it in a dramatic crimson light. Describing the event as the most important astronomical phenomenon
ENHANCING DETERRENCE: Stationing the missiles in Kyushu would allow Japan to cover waters near Taiwan and China’s coastal areas without any logistical difficulties Japan is to deploy extended-range anti-ship missiles at a Ground Self-Defense Force base in Kumamoto to bolster its defenses, the Yomiuri Shimbun reported on Saturday. The upgraded Type 12 surface-to-ship missile, with a range of more than 1,000km, would be capable of striking targets in the Taiwan Strait and along China’s coast. Originally limited to a few hundred kilometers, the Type 12 was recently modernized ahead of schedule. Deployment, initially slated for next year, has been accelerated after the upgrade was completed sooner than expected, the newspaper said. Stationing the missiles in Kyushu would allow Japan to cover waters near Taiwan and
The presence of Taiwanese politicians at China’s military parade tomorrow would send the wrong message to Beijing and the international community about Taiwan’s sovereignty and democracy, a national security official said yesterday. China is to hold the parade tomorrow to mark the 80th anniversary of Japan’s surrender in World War II. By bringing together leaders of “anti-West” governments such as Russia, North Korea, Iran and Belarus, the parade aims to project a symbolic image of an alliance that is cohesive and unbending against Western countries, the national security official said, speaking on condition of anonymity. Former Chinese Nationalist Party (KMT) chairwoman Hung Hsiu-chu
RSS