The Financial Institution Supervision Committee is Anxious to be Officially Formed;

The Financial Institution Supervision Committee of the Executive Yuan will officially be formed on July 1, 2004. This move will be a major transformation to our financial supervisory system. Since the supervision of financial matters has been the responsibility of a number of different government agencies such as the Ministry of Finance, the Central Bank of China, the Central Deposit Insurance Corp. Ltd., and other arms of the government, it resulted in overlapping powers and responsibilities. Thus, ever since the KMT years, the government has started planning the formation of an independent supervisory committee so as to integrate, and raise the efficiency of the supervision of financial matters. Last July 27, this organization was finally formed after the “Organic Law of Financial Institution Supervision Committee of Executive Yuan” was formally promulgated. 

According to the new legislation, the “Organic Law of Financial Institution Supervision Committee of Executive Yuan” will dominate the financial market, control the development of the financial sector, supervise, manage, and inspect businesses. However, the Central Bank of China still has the “inspection right for specific cases” for foreign exchange and foreign currency while the deposit insurance companies have the “exclusive right for inspection” to those insured units; the inspection right to listed companies and stock brokers will remain under the authority of the Taiwan Stock Exchange Corporation. (2004.06)

CYJ/SH