September 1, 2004
The Regional Financial Service Center Promotion Task Force, at its second meeting in mid-August, reached a consensus to allow foreign firms to issue foreign currency bonds beginning at the end of January 2005. Recently established by the Council for Economic Planning and Development (CEPD), the task force maintains that Taiwan's high volume of capital, as evidenced by its high foreign exchange reserves, makes it an ideal place for foreign firms in search of funds. It is also studying the feasibility of permitting domestic firms to issue foreign currency bonds in order to provide a greater variety of corporate bond trading products.
Charged with building Taiwan into a financial powerhouse in Asia, the task force is working on such issues as making Taiwan a regional center for the raising of capital, promoting the development of asset management operations and increasing the variety of financial services, including insurance products and new banking services, in addition to strengthening the overall structure of Taiwan's financial markets.
At its first meeting in mid-July, the task force decided that a financial-services law should be drafted within two years and recommended that Taiwan requires three large-sized banks that can hold their own when faced with competition from established international players. It also reached an agreement to begin by listing the financial products that will not be allowed on Taiwan's financial markets, rather than those that will be. This policy is designed to speed the development of the financial services sector and promote variety by not placing unnecessary restraints on the types of financial products financial institutions wish to deal in.
Taiwan's financial services sector generates 11.4% of the nation's
GDP. Current CEPD estimates place this figure at 13% by 2008, putting Taiwan on a par with Hongkong and Singapore.
(Economic Daily News, Central News Agency)
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