FormerChairmanDavidC.Y.Sun
My relationship with the CDIC dated back to before the corporation's foundation. At that time, I was
working at theCentral Bank and takingpart indrafting
theDeposit InsuranceAct
and the organizational
plan for theCDIC. In September 1985, theCDICwas established as the exclusive institution in chargeof
implementing thedeposit insurance system inTaiwan.
Since that time, theentire team at theCDIChas embraced the challenges inherent in a newundertaking
in a spirit of mutual encouragement. The corporation has also proactively advanced and steadily
improved various systems. For example, the voluntary participation systemwas replacedby compulsory
insurance, the flat rate premiumwas substituted by a differential premium, and insurance risk control
andmanagement has been strengthened. In conjunction with government policy, the CDIC has also
preventedbank runs through itsmissionsof guidance, superintendenceand conservatorshipof troubled
financial institutions.
I was appointed as a boardmember of the CDIC in July 2008. The subsequent global financial crisis
prompted the Taiwan government to announce blanket deposit guarantees inOctober 2008, making
Taiwan the first country inAsia to adopt suchmeasures. As financial markets stabilized, Taiwan reverted
to a limited coverage system from 2011, around the same time as similar moves in neighboring Hong
Kong, SingaporeandMalaysia.At the same time, theCDIC increased themaximum coverageand scope,
aswell as strengthenedadvocacyalongwithother supportingmeasures toachievepolicy functions.
Since2001, theCDIChas beenentrustedby theExecutiveYuan's Financial RestructuringFund tohandle
the resolution of problem financial institutions. The corporation honed its operations in the face of
difficulties andovercame countlesshardships and challenges toultimatelyachieve the smooth resolution
of 56 troubled financial institutions, effectively stabilizing the financial order andprotecting the rights and
interests of depositors. This process also imparted the staff of theCDICwithextensive
practical experience.
To align with international trends, the CDIC became a foundingmember of the
International Association of Deposit Insurers (IADI) in 2002. It subsequently
served as a member of IADI's Executive Council among other positions, and
actively participated in the association's activities. The CDIC has also signed
Memorandums of Understandingwith numerous international peers, establishing
closeexchange relations andheighteningTaiwan's international image.
As we celebrate the CDIC's 30th anniversary, I remember with gratitude the
painstakingefforts of the corporation's past chairmen andpresidents, aswell
as the efforts and cultivation by the CDIC staff that enabled the scale and
achievements of the corporation today. Looking to the future, I am confident
that the entire team at the CDICwill continue to uphold an industrious and
professional spirit and coordinatewithgovernment policy inongoingefforts
to achieve the vision of "developing the deposit insurancemechanism and
ensuring financial stability."
DavidC.Y. Sun, FormerChairman
14
Central Deposit Insurance Corporation 30Years inRetrospect
