Ever since the Central Deposit Insurance Corp. (CDIC) was established in 1985 it has devoted itself to the promotion of Taiwan's deposit insurance system and to assisting with the implementation of the island's financial supervisory system. The CDIC is now entering its 20th year, and its 20th anniversary celebration will be held on Sept. 27. 2005 in the Grand Ballroom on the 12th floor of the Grand Hotel in Taipei. To help celebrate this event, the CDIC is also hosting the 4th Annual General Meeting and Conference of the International Association of Deposit Insurers (IADI), along with a series of related activities, on Sept. 27-29.
Taiwan's government enacted the Deposit Insurance Act to carry through with the policy of protecting the interests of depositors, encouraging savings, maintaining order in the credit system, and promoting the healthy development of the financial industry. The CDIC was established, with capital from the Ministry of Finance and the Central Bank, as Taiwan's dedicated deposit insurance agency. Since its inception two decades ago the CDIC has acted as Taiwan's most competent "financial fireman" and the first line of defense against chain-reaction runs on banks. In 1999, the deposit insurance system was switched from voluntary to compulsory in order to extend insurance coverage to all depositors and assure the healthy operation of the island's financial system.
As a part of Taiwan's financial safety net, the CDIC strives for healthy improvement of the financial system, the establishment of a nation-wide financial early warning system, the implementation of a system of differential deposit insurance premiums, and the installation of a real-time Internet information transmission system. Together, these developments mark an epoch-making advance in financial risk management and information operations. In recent years the CDIC has also assisted the government in carrying out financial reform and, on commission by the Executive Yuan's Financial Reconstruction Fund, has helped to set up a mechanism for the peaceful withdrawal of problem financial institutions from the market. To date, 48 such institutions have successfully withdrawn from the financial sector.
The CDIC has worked constantly and vigorously to connect with the international community, and in May of 2002 became a founding member of the IADI. Taiwan is honored to be chosen by the IADI to host its 4th Annual General Meeting and Conference, beginning on the afternoon of Sept. 27. One of the featured items on the meeting's agenda is the 1st International Deposit Insurance Exhibition, with an exchange of experiences and developments by deposit insurance institutions from 32 countries. In addition, the CDIC has organized a retrospective exhibition that illustrates its 20 years of history. The Exhibition is open free to the general public.
The activities connected with the AGM and Conference will be attended by top ROC government leaders including Premier Frank Hsieh, Finance Minister Lin Chuan, Grand Justice Lai In-Jaw of the Judicial Yuan, and Vice Chairperson Susan Chang of the Financial Supervisory Commission, as well as other dignitaries from finance and academe. A total of 500 guests have been invited to the CDIC's 20th anniversary celebration, including 150 representatives from more than 50 foreign countries. These events will do much to enhance Taiwan's image and professional position in the international community.
The Central Deposit Insurance Corporation is grateful for the care and support with which it has been favored by all sectors over the years. In the future, the CDIC will continue building on its existing foundation and seeking constant improvement with the aim of fulfilling the policy goals of protecting the interests of depositors and assuring financial order through the provision of deposit insurance.