TAIWAN TO SET UP NEW WATCHDOG FOR FINANCIAL CONGLOMERATES

Taiwan’s finance ministry has proposed a new watchdog to regulate financial conglomerates, noting that its “division of labour” method of regulating the finance industry has become outdated. “Taking our country as an example, statistics show 11 companies simultaneously operate banks, brokerages and insurance firms”, the finance ministry said. It has drafted a plan to set up a regulatory body governing banking, securities, insurance, futures and financial groups, and submitted it to Taiwan’s cabinet for approval. Regulatory authority for the financial sector is currently held by four departments of Taiwan’s finance ministry and the central bank. The new regulatory body would have six board members, including the finance minister and the central bank governor, as well as a chairman and two vice-presidents. Taiwan has also announced looser restrictions for banks seeking to diversify into other financial businesses, with finance minister Shea Jia-dong saying that the government would allow banks to invest in financial sectors through holding companies.