The planned financial supervisory board (FSB,
Yen said he hoped the new supervisory body will function as a ministerial-level body under the Ministry of Finance, as is the practice with such agencies abroad. Nine nations including Great Britain, Sweden, Australia, Singapore and Canada all have financial supervisory bodies.
"The FSB is by its nature only responsible for financial supervision and does not engage in policy-making ... [foreign FSBs] are all under the jurisdiction of [the nation's] finance ministry," Yen said.
Under the proposed FSB bill, currently under legislative review, the three government bank examination agencies and the supervisory bodies for banks, securities and insurance companies are to be consolidated into one agency.
Yen made the comments following weeks of squabbling in the legislature over the make-up of the board. The disagreement between the ruling DPP and opposition parties has stalled the passage of the draft bill in the law-making body as it prepares to go into recess today.
The finance minister said the potential intrusion of politicians into the board is bad news for future FSB professionalism.
"If board members come from political parties, that will be a disaster," Yen said.
He added that "in order to keep [the board's] autonomy, legislators have to keep their hands out of the body."
Last week, Yen's boss, Vice Premier Lai In-jaw (賴英照), agreed, saying those most qualified to do the job should be selected for the board. "When political parties recommend academics or professionals [for the FSB], the priority should be on professionalism, instead of politics," he said.
When the Financial Holding Company Law (
Yen explained that the proposed FSB is expected to function as a quasi-judicial body to oversee newly formed financial holding companies. Therefore, maintaining the board's independence will safeguard it from political interference, he said.
Yen, however, disagreed with the Cabinet's original proposal to create a so-called "unified" FSB, which is expected to be charged with both financial supervision and policy-making.
When asked whether the finance minister would act as chairman of the board under the plan, Yen replied that "borrowing from foreign practice, FSB heads are either nominated by the finance minister or [recommended] by the minister, and subject to approval from the premier or the president."
A Chinese freighter that allegedly snapped an undersea cable linking Taiwan proper to Penghu County is suspected of being owned by a Chinese state-run company and had docked at the ports of Kaohsiung and Keelung for three months using different names. On Tuesday last week, the Togo-flagged freighter Hong Tai 58 (宏泰58號) and its Chinese crew were detained after the Taipei-Penghu No. 3 submarine cable was severed. When the Coast Guard Administration (CGA) first attempted to detain the ship on grounds of possible sabotage, its crew said the ship’s name was Hong Tai 168, although the Automatic Identification System (AIS)
An Akizuki-class destroyer last month made the first-ever solo transit of a Japan Maritime Self-Defense Force ship through the Taiwan Strait, Japanese government officials with knowledge of the matter said yesterday. The JS Akizuki carried out a north-to-south transit through the Taiwan Strait on Feb. 5 as it sailed to the South China Sea to participate in a joint exercise with US, Australian and Philippine forces that day. The Japanese destroyer JS Sazanami in September last year made the Japan Maritime Self-Defense Force’s first-ever transit through the Taiwan Strait, but it was joined by vessels from New Zealand and Australia,
SECURITY: The purpose for giving Hong Kong and Macau residents more lenient paths to permanent residency no longer applies due to China’s policies, a source said The government is considering removing an optional path to citizenship for residents from Hong Kong and Macau, and lengthening the terms for permanent residence eligibility, a source said yesterday. In a bid to prevent the Chinese Communist Party (CCP) from infiltrating Taiwan through immigration from Hong Kong and Macau, the government could amend immigration laws for residents of the territories who currently receive preferential treatment, an official familiar with the matter speaking on condition of anonymity said. The move was part of “national security-related legislative reform,” they added. Under the amendments, arrivals from the Chinese territories would have to reside in Taiwan for
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
RSS