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Chairman''s Statement of Year 2017

The purpose of the establishment of the FSC is to build a sound, fair, effective and internationalized financial environment and market and maintain financial stability. Since I took up the post of FSC Chairman in October 2016, as well as urging financial institutions to be independent, self-disciplined and self-reliant and to implement legal compliance and internal control, we have carried out deregulation and the opening up of businesses to assist the financial market and industry develop and to increase the overall competitiveness of our financial industry. We have also helped channel capital into the real economy, assisted enterprises raise funds in the capital market and enhanced protection of the rights and interests of investors and financial consumers. The concrete measures we have adopted are:
 
Made obtaining of finance for entrepreneurship easier: We encourage domestic banks, while paying attention to risk control, to grant credit to new key industries and have raised the limit on the percentage stock holding of financial holding companies in new key industries to enhance the support the financial industry gives to industry and help it develop, driving the prosperity of the financial industry and the real economy overall.
 
Promoted FinTech innovative experimentation: We encourage the increasing of our financial industry’s competitiveness through innovative financial products and services, providing a safe environment for FinTech R&D and trials by the financial service industry and related industries.
 
Developed green finance: To assist the green energy industry obtain the funds needed to develop, the FSC has implemented the Green Finance Action Program. Financial institutions are encouraged to provide related finance. Green finance talent cultivation has been enhanced, the idea of green sustainability is being promoted. In doing so, the financial industry supports industry and green industry drives the development of green finance.
 
Encouraged the development of financial products for the elderly: Financial institutions are encouraged to develop products and services suited to the elderly, including care trusts and commercial reverse mortgages for seniors; we encourage trust businesses to issue fund products suitable for retirement wealth management so that citizens have more financial tools with which they can plan life in old age.
 
Supported the New Southbound Policy: We encourage domestic banks to expand their presence in New Southbound target countries to provide in-country financial services; and, under the principle of risk control, we also encourage domestic banks to provide credit to enterprises in Taiwan or Taiwanese-owned enterprises in New Southbound target countries to give them the funds they need to develop their business.
 
Encouraged financial institutions to take part in urban renewal: In support of the government’s urban renewal policy and to increase land use efficiency, the FSC encourages financial institutions to actively take part in urban renewal. Regulations on the participation of banks in urban renewal projects have been loosened. Banks are encouraged to use their self-owned old bank buildings to take part in urban renewal, and the financial and insurance industries are encouraged to provide funding support for urban renewal projects.
 
Increased stock market liquidity: As the trading volume of Taiwan stock in recent years has shown a decrease trend, taking into account the securities transaction tax in Taiwan is 3‰, higher than stock markets in Europe, the US, Japan and Hong Kong, in coordination with the Ministry of Finance, an amendment of the Securities Transaction Tax Act has been drawn up. This will halve the securities transaction tax rate from 3‰ to 1.5‰.
 
Enhanced protection of the rights and interests of financial consumers and promotion of financial inclusion measures:
1. In coordination with the Small and Medium Enterprise Credit Guarantee Fund and credit cooperatives and with the assistance of the Ministry of Finance, the FSC has brought about the joining of the Small and Medium Enterprise Credit Guarantee mechanism by all 20 credit cooperatives. This will satisfy the financial needs of more SMEs and microbusinesses in remote areas.
2. The FSC actively promotes micro insurance so that economically disadvantaged people can buy basic insurance protection for an affordable premium.
3. The FSC regularly convenes the financial consumer protection supervisory meeting and continues to review the effectiveness of the implementation of financial consumer protection and regulations, and urges financial institutions to provide more diverse friendly financial service measures and financial inclusion measures.
 
Looking to the next year, the FSC will implement the Financial Industry Strategic Development Plan which will have four strategies:
1. Increasing financial industry competitiveness: Through product and market development and deregulation, increasing the vitality and competitiveness of the financial industry.
2. Building a new financial market order: Enhancing the self-discipline of financial institutions, demanding that legal compliance is strengthened and board of directors and head office supervision is implemented by financial institutions.
3. Maintaining the fairness and justice of financial consumption: When selling various financial products, financial institutions will be required to uphold the KYC principle to provide suitable products to customers, and also to handle complaints actively.
4. Implementing financial industry corporate social responsibility: Financial institutions will be encouraged to hold charitable activities and to fulfill corporate social responsibility.
 
Facing rapid changes in the domestic and external economic situation and social structure, financial supervision and policy must move with the times. The FSC will assist financial institutions develop their business and increase their profitability, to build an environment favorable to the operation of financial institutions, make the financial industry grow strong and foster industry and the overall economy.
 
Visitor: 147   Update: 2019-02-13