Words from thePresident
PresidentMichaelM.K. Lin
The 30th anniversary of the CDIC brings a time to reflect on the past three decades. During this time,
participation in Taiwan's deposit insurance system has transitioned from a voluntary tomandatory basis,
andmore recently to a systembasedonmandatory application for permission to join the system. Along
the way, there were several depositor runs on insured institutions and financial crises. Fortunately, the
CDIC was able, with guidance from the competent authority and the collective efforts of its staff, to
fulfill its fire brigade role, defuse the crises and smoothly restore the financial order. At the same time,
the CDIC has shouldered the task of handling the resolution of unsound financial institutions and laid
a foundation for the smooth operation of the banking industry today. At this time, as a part of theCDIC
team, I extend the highest respects tomy colleagues for their past dedication and hardwork and feel
grateful tobeable to share in their achievements.
Going forward, theCDIC facesmany tasks that need tobeadvanced constantly:
1. Strengthening risk management: In addition to the ongoing operation of the existing financial
early warning system, the CDICwill review various types of risk indicators for insured institutions,
strengthen timely detection and analysis of the operational risks faced by insured institutions,
produce timelywarnings, and takeappropriate responsemeasures.
2. Enhancing the legal framework for deposit insurance: The present legal framework has enabled
the successful resolution of problem insured institutions. Nevertheless, timely amendments to
legal framework will be necessary with regard to offsetting of creditor and debtor rights,
reimbursements for pension and joint accounts, and ensure the smooth operation of
thepayment system for futurepayoutsunder limiteddeposit insurance coverage.
3. Building up the payout special reserves and promoting awareness of deposit
insurance: The CDIC will adopt more flexible methods of fund investment to
increase earnings and accelerate growth of the payout special reserve. The CDIC
will also diversify channels to support more effective advocacy and broaden
publicawarenessof deposit insurance.
4. Continuing topromote statutorymandates: TheCDIC's statutorymandates
include strengthening participation in international deposit insurance
affairs, enhancing cooperation and liaison; continuing to dispose
the retained assets and handling the ongoing litigation of problem
insured institutions; seeking legal redress for illegal acts by employees
of problem insured institutions; carrying out statutory inspections;
cultivatingemployee familiaritywithmarket operations andprofessional
knowledge; and strengthening internal controls.
MichaelM.K. Lin, President
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Words from thePresident
