Fai-nan Perng

Thursday, July 9, 2009

Chairman Chu, Members of the Hsieh Family, Distinguished Guests, Ladies and Gentlemen:

Governor Hsieh passed away in the spring of 2004. We have gathered here today to celebrate his life and achievements. It is a great honor for me to pay tribute to Governor Hsieh and remember his many accomplishments as a central banker.

Dr. Hsieh took up his post as governor of the central bank in June 1989. The four primary objectives of the central bank are to promote financial stability, guide sound banking operations, maintain the stability of the internal and external value of the currency and foster economic development. Judging by this set of criteria, Governor Hsieh was an excellent central banker. During his five years in office, the CPI went up by 3.9 percent each year on average. GDP growth averaged 7.13 percent. The exchange rate was relatively stable and the balance of payments stayed in good shape throughout.

As the pressure for financial deregulation intensified in Taiwan in the late 1980s, Governor Hsieh asked me to set up the Taipei Foreign Exchange Inter-bank Call Loan Market in 1989. The market turnover was 145 billion US dollars in 1990 and reached almost 2 trillion US dollars in 2008. Within eighteen years, the trading volume went up fourteen times. I am sure Governor Hsieh would have been pleased with these results. In the later years, as the pace of financial globalization accelerated, Governor Hsieh had the good foresight of setting up a representative office in New York in 1993 and in London in 1994. These offices enable the bank to conduct 24-hour trading. This proved invaluable during the recent financial crisis.

While in office, Governor Hsieh also played a key role in building financial diplomacy. Under his guidance, the central bank became a member of the organization of South East Asian Central Banks in 1992. Our country joined the Central American Bank for Economic Integration in the same year and later built up close links with both the Inter-American Development Bank and the European Bank for Reconstruction and Development.

I first met Dr. Hsieh in 1989 at the Bank of Communications right after his appointment as governor of the central bank was announced. Over time, my respect and admiration for him grew immensely. His dedication to work, warmth of character, openness, and enthusiasm for life set a fine example for us all. Governor Hsieh believed that to lead a meaningful life a person must be devoted to professional work, bring up a happy family, keep good and intimate friends, maintain a harmonious relationship with colleagues, develop an interest in art and literature and have strong religious beliefs. These ideas may be simple, but they are the secrets of a long and successful life.

I am very honored to have known Governor Hsieh on a personal level. He has been a great mentor and role model for me. Governor Hsieh left us five years ago. In these uncertain times, his counsel and advice have never been more deeply missed. He will always be remembered by those who knew him.

God bless you all. Thank you.