Dennis Engbarth reports on how political tussles are stalling attempts to rescue Taiwan’s ailing banking system.Recent efforts to clean up Taiwan’s troubled financial system have suffered a major setback as the national legislature failed to approve a major replenishment of the official Financial Reconstruction Fund (FRF), an entity similar to the resolution trust companies used to combat the US savings and loans crisis in the 1980s.
A draft bill for a boost in FRF funding and for expansion of its scope was not even sent to the floor as opposition legislators and finance ministry officials failed to reach compromises on key obstacles. The long-awaited statute to establish an unified financial services supervisory committee and a draft bill to revamp the troubled grassroots agricultural finance system also failed to make progress.
