Economic development and financial system reform in Taiwan

In the last decade, the promotion of financial liberalization has greatly influenced the rapid development of Taiwan’s financial markets. Following the interest rate liberalization that took place in the 1980s, many measures have been taken to open financial markets. Major measures have included the following. In 1988, permission was given for the establishment of securities companies. In 1991, similar permission was given for new private commercial banks. The regulations governing bill-financing companies were relaxed in 1994. Regulations on commercial banks engaging in the bill business were relaxed in both 1992 and 1995. Overseas Chinese and foreigners have been allowed to directly invest in the local stock market since March 1996. © Masayoshi Tsurumi 2001.