In the past year, the various financial measures adopted by the FSC have achieved significant results in terms of market development and expanding the scope of operation of financial institutions. In the area of banking business, credit card holders’ burden has been eased, the implementation of the Program for Financial Support of Creative Industries is continuing to encourage banks to give loans to creative industries, and risk control, product transaction and sales management with respect to complex high risk financial products have been strengthened to protect the rights and interests of consumers. In the area of securities and futures, to increase Taiwan’s global capital market competitiveness, the Securities Market Uplift Program implemented by the FSC has brought about a 10- 15% rise in trading volume; as for insurance business, in 2015 domestic insurers were allowed to establish OIU. In the area of building a digitalized environment, the FSC put forward the four strategies of regulatory adjustment to meet requirements, enhancing consumer protection, increasing information security and raising the level of financial information professional capability, and also adopted measures to build an environment conducive to the development of digital finance, to lay down a solid foundation for the further development of the financial industry.
At the end of 2015, the asset scale of the financial industry as a whole was NT$79.8 trillion; the value of listed companies on the capital markets was NT$27.2 trillion, and financial business and profitability have clearly improved; pre-tax profits of the banking industry in 2015 were NT$371.7 billion; the non-performing loans ratio of domestic banks was 0.23%, and the NPL coverage ratio was 555.43%; in 2015, the life insurance industry had premium income of NT$2.9 trillion and pre-tax profits of NT$137.6 billion.
In the face of the challenges to Taiwan’s economy, financial supervision and policy must be continually updated. Short term and long term development strategies will be quickly formulated. Through financial intermediation, domestic real investment will be increased, and entrepreneurship also encouraged, with the aim of driving industrial development, increasing employment opportunities and promoting a positive economic cycle.
The FSC is implementing eight short-term strategies: (1) Finance assisting industry: Inter-agency cooperation will be strengthened, encouraging the financial industry to provide assistance to develop the economy and increase investment. (2) Increasing loans to SMEs: As well as continuing to actively promote the program for increasing loans to SMEs, the use of the Small and Medium Enterprise Credit Guarantee mechanism will be enhanced to increase the proportion of loans given to SMEs. (3) Encouraging innovation and entrepreneurship: The multi-level capital market mechanism which includes the Go Incubation Board for startup and acceleration firms, equity crowdfunding , and listing on the emerging stock market will be strengthened; cooperation with affiliated financial organizations will be enhanced (4) Promoting financial products for the elderly: The development of products and services suitable for the elderly are encouraged and, in combination with the resources of medical and care service organizations, provision of the capital and care services the elderly need to live, to not only allow people to have more financial choices for retirement thus meet the needs of an aging society, but also expanding the scope of financial business. (5) Strengthening corporate governance, implementing graded management: the FSC will continue to strengthen the corporate governance system, and push ahead corporate social responsibility. (6) Developing FinTech business models: On the basis of fairness, security and risk management, the FSC will raise the level of information security and help financial employees transform in order to develop more diverse FinTech services, increase efficiency and protect consumers’ rights and interests. (7) Reviewing the insurance RBC system: In calculating risk-based capital, the currently-used 6-month average price of stock is incomplete to have a counter-cyclical effect, therefore the FSC will study to include the stock counter cyclical mechanism in the risk based capital system. (8) Making
effective use of manpower to create job opportunities: In line with the human resources needs of listed companies, the FSC will promote industry-academia cooperation with the Ministry of Education, and will set up a platform or related mechanism to make effective use of retired financial industry personnel to serve as mentors, volunteers or consultants to assist the development of startups and micro business.
There are also the three long - term strategies of (1) Building a beneficial environment, bringing the financial intermediation function into play, promoting overall economic development, creating a win-win situation for finance and industry (2) Promoting the alignment of Taiwan’s financial system with international norms and establishing of overseas presence by financial institutions while keeping roots in Taiwan (3) Building a sound financial market, providing diverse fund-raising and investment channels.
The FSC will continue to strive to fulfill its 5 responsibilities of “ensuring sound finances and business operation of financial institutions,” “maintaining financial stability and market order,” “protecting the rights and interests of consumers,” “creating an environment beneficial for the promotion of financial development,” and “promoting the bringing into play of the financial intermediation function to assist economic development”. Measures beneficial to the development of finance will be formulated and the financial industry encouraged to upgrade competitiveness and provide the best assistance to general industry in Taiwan to make a greater contribution to economic development. The FSC will also maintain close communication and cooperation with supervisory authorities in other jurisdictions to jointly maintain regional and global financial stability.