An Investigation into Finance Reformation under Corporate governance with Internal Control – Taiwan Financial Environment Case Study
Date Issued
2005
Date
2005
Author(s)
SU, TEH-CHIEN
DOI
zh-TW
Abstract
This research is based on personal experience of serving in Bank of Taiwan for 37 years and undertakes general audit duty for years as practical experience and reality cases. It also combines with the knowledge which learned from National Taiwan University EMBA course. Synthesis brings up the Research of 'Finance Reformation under Corporate Governance with Internal Control. It focus on investigating of relationship between corporate governance and banks finance reformation, in order to establish the role of corporate governance on banks’ finance reformation, and solve the problems that banks execute corporate governance in depth. Analyzing corporate governance system in domestic finance reformation in terms of both organizational and anthropoid perspective and provide the appropriate control system. So that, the banks can achieve preventing fraud prosper benefit, running steadily, and further creating a fund circulation and safe investment financial environment.
Government is playing an important role of pushing banks execute corporate governance. Facing banks finance reformation, government should respond as quickly as possible in order to adapt the dramatic changes of financial market environment. Government should not only legislate the relative corporate governance rule or law, but also supervise executer actively and constantly, lead banks have independent supervisor system, discloses information clear, practice internal controls and risk management system, aggrandize stockholder strength, in order to improve the competitiveness of domestic banks possess in the Pacific region. Reformation process always faces difference; however, it should be insisted for future. The government and banks must build up common consensus and show the dogged determination to reform finance and push corporate governance in full power practicable.
Banking system is granted as risk’s taker in economic system. To complete well corporate governance, banks can debase problems and risks relatively. Bank’s corporate governance depends on bank self-discipline, market restriction and director office supervising; however, promoting bank self-discipline is the root. Therefore bank’s board of director must take responsible for bank’s loss. That means bank’s board of director has final duty on success or failure of bank’s management. Government's reformation refract to whether the chairman of bank has corporate governance concept. Leading bank's corporate governance and proceeding directorate's reformation to reach really effective reformation finance and stable domestic economy.
The "Bank Internal Controls and Audit System Rules" (Ministry of Finance announced, 2001) seems have never been really practice. Chairman of banks should strengthen their corporate governance concept and establish virtually corporate governance functions in the bank, and execute really aloof independent internal auditing system. General auditor is responsible for directorate, but not the chairman. In addition, ameliorating Taiwan current banking institution and enterprise, which is chairman equates directorate and all of the conclusion of meeting will fallow the chairman’s intention. In other words, auditing function becomes the tool of the board chairman. Finance reforms want to be accomplished with one stroke, banking institution must boot corporate governance, exert directorate intendance, policy and inquiry's function, internal controls can actually execute, internal auditing can really aloof independent. Bank’s chairman of board and senior manager possess corporate governance, effort to investigate and establish corporate governance, make sure independent internal auditing operation function, and achieve the mentions above. Then the finance reform can reach to some extent effect.
Subjects
內部控制
內部稽核
internal audit
internal control
Type
other