Lin Chun gets new job at CDIB, not the presidency

China Development Industrial Bank (CDIB, 中華開發銀行) has announced that Lin Chun (林鈞) will be given a new job at the bank after regulators rejected him for the post of president.

Lin, 54, was rejected as president because he lacks commercial banking experience, the finance ministry told the bank's board of directors.

Lin will be appointed senior executive vice president in charge of CDIB's direct investments, spokeswoman Grace Fang (方鳳山) said. Lin had headed the bank's venture capital unit.

Bank chairman Liu Tai-ying (劉泰英) will take on the post of president on top of his existing duties.

By law, senior bank executives must be approved by the government, which owns about 5 percent of CDIB, Taiwan's biggest lender by market value, through three government-controlled banks: the International Commercial Bank of China (中國商銀), Chiao Tung Bank (交通銀行) and Bank of Taiwan

(台灣銀行).

Lin was nominated to the position last month after former president Benny Hu (胡定吾) was ousted by the bank's board.

Meanwhile, the board yesterday gave the go-ahead for the bank to invest NT$5 billion to establish an asset management company, the company announced in a statement.

While the capitalization of the company will be NT$5 billion (US$144 million), the initial paid-in capital will be NT$1.25 billion, the statement said.

The asset management company is to be headed by Hu.

The asset management company will be set up as a holding company, which will be wholly owned by the China Development. In future, the company will jointly set up an asset management and an asset management consultant company with foreign partners, the statement said.