The Central Deposit Insurance Corporation (CDIC) organized a "Symposium on Risk Management in the Post Financial Restructuring Era" on September 23 and 24, 2004, at the Sheraton Taipei Hotel (12 Jhongsiao E. Rd., Sec. 1, Taipei). Discussions during the two-day symposium focused on smoothly transitioning Taiwan's deposit insurance system from a blanket guarantee to a limited deposit insurance coverage following the expiration of the Executive Yuan's Financial Restructuring Fund in July 2005. The symposium also addressed topics relevant to recent trends in the international and domestic financial sector and the deepening of financial institution risk management concepts.
Financial globalization and diversification has driven the integration of financial systems and the development of new derivative financial products, intensifying competition in the financial industry and heightening financial risk. This has drawn greater attention, in both Taiwan and the international community, to the need to strengthen financial systems and mechanisms for managing financial risk. It has also given rise to important new measures and responses. Internationally, these have included the New Basel Capital Accord, which Taiwan and the rest of the international community will implement at the end of 2006. In Taiwan, development trends in corporate governance, the expiration of the Financial Restructuring Fund, the establishment of the Financial Supervisory Commission, and passage of the Agricultural Financial Law will also bring new opportunities and challenges for the financial system. In conjunction with government directives, CDIC arranged the "Symposium on Risk Management in the Post Financial Restructuring Era" to advocate management ideas in joint existence and prosperity consistent for financial risk control and development of the financial sector. The symposium featured speeches by Susan Chang, vice chairperson of the Financial Supervisory Commission, Executive Yuan, as well as by Shinichi Yoshikuni, chief representative at the Bank for International Settlements Representative Office for Asia and the Pacific. Presentations were also given on topics related to the New Basel Capital Accord and recent international trends in financial risk management. Nishigaki Yutaka, Director of Office for Research & Intelligence at Deposit Insurance of Japan; and Jang Chang-Sung, Director of Risk Management Department, at Korea Deposit Insurance Corporation shared the experience of their respective countries in financial risk management and the transition from a blanket guarantee to a limited insurance coverage. Several representatives of domestic agencies in charge of agricultural finance, financial industry representatives and scholars also took part in the talks, sharing their invaluable experience with the domestic financial industry. The symposium was attended about 400 people, including representatives of the Financial Supervisory Commission, Ministry of Finance, Central Bank of China, Council of Agriculture (Bureau of Agricultural Finance), Finance Committee of the Legislative Yuan, Bankers' Association of the ROC, and National Federation of Credit Cooperatives, as well as top executives of domestic banks participating in the deposit insurance system, and domestic scholars and experts in the financial field.
By holding this symposium, CDIC aims to encourage financial industry insiders to recognize the importance of risk management so as to enhance the operation environment and sustainable competitive position of Taiwan's financial industry following the expiration of the Executive Yuan Financial Restructuring Fund. It also aims to assist CDIC in realizing its policy goals of ensuring depositor rights and interests and stabilizing financial order through the deposit insurance system.
Moreover, the CDIC will mark its 20th anniversary by hosting the Annual General Meeting and Conference and Asia regional committee of the International Association of Deposit Insurers (IADI) in September 2005. At that time, over 100 association members from more than 50 countries will come to Taiwan. For CDIC, this event is a great honor and affirmation. It is also highly significant in enhancing Taiwan's international image. We hope that everyone will cooperate with us on this project and continue lending their support.