Domestic banks looking to expand in other parts of Asia will receive the government's full support, Premier Jiang Yi-huah said at today's Cabinet meeting. He is hopeful that at least one or two will become significant players in the Asian market within the next three to five years.
To provide these businesses with more comprehensive support overseas, the Financial Supervisory Commission (FSC) said it has formulated measures to strengthen joint supervision with other governments, ease regulations and procedures, train international talents, and set up an overseas expansion database.
The premier gave FSC the go-ahead on these measures and asked the Central Bank to assist and amend related regulations. Meanwhile, the overseas representative offices of the Ministry of Foreign Affairs and Ministry of Economic Affairs will provide the banks with local market intelligence and any needed assistance to give them an edge up on the competition.
Regarding state-run banks, the premier said their performance has been misinterpreted by the public. The missions and functions of these institutions are tied to national policies, and their asset returns and operating performances should be viewed in that context.
Commenting on a government proposal to raise salaries and ease hiring restrictions at state banks, the premier said the move is intended to attract top talent and improve the banks' performance. It is an appropriate move even though the public has criticized state bank executives as being "fat cats." The premier urged the Ministry of Finance to carefully study and explain the proposition to the public and not to be hindered from doing the right thing due to criticism. He hopes other finance and economics officials will take the same position and defend the government's actions.
The FSC stated that in the past three years, the government has assisted domestic banks to establish 47 overseas branches, of which 41 are in Asia. It is hoped these measures and programs will help Taiwan's financial service providers grow and prosper so that they may make further inroads into the Asian market.