Chairman Tseng''s Inauguration Speech of the Handover Ceremony
First of all, thank you all for attending the Handover Ceremony today.
Chairman Chen just mentioned a number of accomplishments that have been achieved in recent years, such as the opening of cross-strait finance and RMB business, promotion of offshore securities units, and the cleanup of troubled insurance institutions. Despite all these achievements, it has recently been stated in the news media that our financial environment is still not liberalized enough. This is unfair to Chairman Chen. I want to take this opportunity, on behalf of all our colleagues at the Financial Supervisory Commission, to express our sincere gratitude to Chairman Chen for his contributions to our financial industry, and for the good foundation that he has laid for the banking industry.
After I take over as chairman, the FSC will face great expectations from all sorts of people. I come from the financial industry, and have worked at the FSC for four years, so I have many old acquaintances here. Picking up where Chairman Chen has left off, I hope I can make some contribution to the financial sector. I intend to work together with Vice Chairpersons Wang and Wu, our other FSC commissioners, and the four Director-Generals to achieve this goal.
First of all, I have three ideas about financial supervision. First, the most important concern of financial supervision is legal compliance. Financial institutions must follow strict discipline, abide by laws and regulations, and pay attention to risk management. If financial institutions don''t manage risks and have no discipline, they cannot be run sustainably. These are the most important foundations of a financial institution''s management.
Second, we hope to strike a balance between supervision and financial development in order to provide financial institutions with an environment where they can flourish. We also wish to hear more advice from financial institutions so that we can enable our domestic financial institutions to diversify their businesses. In addition, the global center of economic gravity is shifting—from north to south, and from west to east. Taiwan, being located in Southeast Asia, will be part of the new center of world economic development. For this reason, we encourage financial institutions to strengthen their presence in Asia and Southeast Asia. The FSC will be studying what measures it can take to help our financial institutions reach out beyond Taiwan and create a more brilliant future.
Third, the focus of the FSC goes beyond the financial industry. We also need to facilitate the development of the overall economy. Article 1 of the Banking Act explicitly provides that, in addition to protecting the interests of depositors, banks also need to facilitate development of the economy as a whole. Therefore, in addition to maintaining sound banking operations, we hope that the financial sector can assist with the development of other industries as well.
Finally, Chairman Chen has laid a very good foundation. It is our job now to build upon it. The FSC is going to open its doors wide, and listen to opinions from all sectors. We welcome financial firms to share their views with us at any time. Thank you all very much.