Central Bank of the Republic of China-Main-FAQ-How is the relationship among the Central Bank, the Ministry of Finance and the newly established Financial Supervision Commission?

How is the relationship among the Central Bank, the Ministry of Finance and the newly established Financial Supervision Commission?

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The Financial Supervision Commission (FSC) under the jurisdiction of the Executive Yuan, will commence its operation from July 1,2004. There will be a close co-operation among the Central Bank, the FSC and the Ministry of Finance (MOF) in the field of financial stability. The responsibilities of the above agencies set out in the relevant statutes are as follow:

The Central Bank’s responsibilities

The Central Bank is responsible for formulating and executing of monetary, credit and foreign exchange policies as to promote the overall stability of the financial system which involve to guide sound banking operations, to maintain the stability of the internal and external value of the currency, and, within the scope of the above, to foster economic development.

The FSC’s responsibilities

The FSC is responsible for the development in financial supervision regulations, and undertaking the examination of financial services and markets.

The MOF’s responsibilities

The MOF is responsible for the formulation and enforce ment of nation al fiscal policy, particularly,customs affairs, taxation and nation al properties.

Through the exercise of each statutory responsibilities, the Central Bank, MOF and FSC will set out the mechanism on the exchanging of information, consultation on policy making or changing which will ensure the three agencies work together towards the common objective of financial stability.