Under the Financial Restructuring Fund’s operationmodel, the FundManagement Committee
was in charge of policy decision-level approval of related handlingmechanism and supporting
measures. In June 2005, the committee established an Evaluation Subcommittee in charge
of auditing asset valuations. The FundManagement Committee consisted of nine to thirteen
members, including one Committee Convener who served concurrently as the head of the
competent authority (the FSC), and one Deputy Committee Convener who served concurrently
as the deputy head of the competent authority. The other members includedDeputy Governor
of the Central Bank, Deputy Minister of the Council of Agriculture, Deputy Minister of the
Directorate General of Budget, Accounting and Statistics, Executive Yuan, and Chairman of the
CDIC. The remaining committeememberswere chosen according to their professional expertise
or experience in law, economics, finance, andother relevant fields. TheEvaluationSubcommittee
comprised seven to nine concurrently servingmembers employed by the FundManagement
Committee and with specialized knowledge and experience in fields related to international
finance,bankingmanagement, or asset valuation.
The tools of resolution adoptedwere purchase and assumption (P&A) transactions. Depending
on the specific circumstances of the failed institutions, as well as the legal requirements and
demand for mergers and acquisitions in financial markets at the time of resolution, the assets/
liabilities and business operations of failed institutions were either sold separately or jointly to
achieve the resolution result of “minimizing resolution costs andmaximizing recovered value.”
45
ReviewandOutlook
