TT: What kind of pressure has WTO membership put on the financial sector?
Yen: The ministry was one of the ministries that were well prepared for accession to WTO. Actually I was a pioneer scholar on GATT (the general agreement on tariffs and trade) in Taiwan. I based my studies in the US particularly on this subject and taught in university on this subject.
In addition I also served as a government advisor at the time of Taiwan's GATT membership. I even published a book on the operations of GATT. Members are required to provide most favored nation treatment and national treatment to all members of the WTO.
We already did this for all foreign financial institutions. So we don't have any adjustments to make in this area, although we do need to open our financial markets to foreign institutions and welcome their participation.
Their entry will not only bring in capital but also advanced management know-how and that will help our financial markets as a whole. However the creation of a world-class environment must include the local players in the market as well.
Through our very determined financial reforms we have given a strong signal to the international community that we are serious about undertaking financial reform as quickly as possible.
And following those reforms you can see that foreign institutional investors are much more confident in the asset quality of our securities market.
One other important message is that Taiwan is trying to develop much more friendly economic relations with China.
So if foreign financial institutions really want to get involved in the retail-banking sector there, they will need to hire Mandarin-speaking bankers.
The only place that can provide quality banking staff is Taiwan. Therefore Taiwan will serve as a very important gateway for foreign financial institutions to participate in China's financial markets.
TT: With the Cabinet expected to be reshuffled today, do you believe you will be asked to stay on and serve the Chen administration?
Yen: (Laughs) No comment.
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