What's FR Fund
Update date:2016-05-06
Special Features of the Restructuring Fund
- Quickly passing the Financial Restructuring Fund statute with a consensus among all sections of society.
During a period of only half a year from December 2000 when the government planned to establish a mechanism for a Financial Restructuring Fund until June 27, 2001 when the Financial Restructuring Fund Statute's third reading was completed in the Legislative Yuan, a consensus was quickly reached between the government and the general public with regard to setting up a special purpose fund to deal with problem financial institutions and implementing temporary measures to fully safeguard depositors, that was backed up with the support of the financial industry and academic communities. To enable the drafts of this Statute and other relevant regulations concerned with financial reform to rapidly become law, the Legislative Yuan, through an unprecedented extraordinary meeting held after the Legislature had adjourned, at one stroke passed the Six Financial Regulations in which the Financial Restructuring Fund Statute was included. This actively demonstrated the R.O.C.'s resolve in implementing financial reforms.
- The Restructuring Fund was established at an early stage to avoid the occurrence of a financial crisis.
Compared with the situations prevailing in the U.S., Japan and other countries where the respective governments drew up budgets and mobilized public funds only after many financial institutions had collapsed and precipitated a financial crisis, in the R.O.C. the government first of all passed a law to establish a Financial Restructuring Fund before several of the problem financial institutions collapsed. This resulted in the government's handling problem financial institutions more efficiently due to a sufficiency of resources, and a financial crisis was successfully averted.