Change, pragmatism and reform-mindedness are some of the words peers and banks alike have used to refer to the chairman of Taiwan’s Financial Supervisory Commission (FSC), Tseng Ming-chung. Market participants have welcomed Mr Tseng’s drive to eliminate the over-regulation that many see as having stifled Taiwan’s financial sector development over the years. Indeed, pushing banks to expand abroad and deregulating local capital markets have turned out to be two of the most effective reforms in Mr Tseng’s agenda.
Taiwanese banks are known to be swimming in excess liquidity, with insufficient means to put extra cash to work. To help banks use this cash more productively, the FSC has been encouraging domestic financial institutions to expand in Asia, where their clients – mostly Taiwanese firms – have been setting up operations.
