Financial Institutions and Regulation of the Republic of China
Prepare and submit a term paper on Financial Institutions and Regulation of the Republic of China. Your paper should be a minimum of 2000 words in length. The institutions also facilitate the flow of cash in the economy, as is the case in Taiwan. The purpose of this paper is to explore Taiwans financial institutions and their regulation.Taiwan, just like any other country has a number of financial institutions that facilitate the flow of money within the country. Aberbach, Dollar, and Sokoloff reveal that the financial institutions of Taiwan consist of the Central Bank of China, local branches of foreign banks, domestic commercial banks, medium and small business banks, investment and trust companies, credit cooperatives, insurance companies and the postal savings system (97).Credit insurance plays a major role in Taiwan as noted by Aberbach, Dollar, and Sokoloff (99). Taiwan uses its credit insurance to offer coverage to both individuals and businesses. The coverage is used for protecting the businesses and citizens in the event that the policyholder is rendered unable to settle outstanding debts because of any incidence that is covered in terms of the policy. Aberbach, Dollar, and Sokoloff note that the protection provided by Taiwans credit insurance is beneficial to both the lender and the debtor (100). They argue that the protection gives the debtor the peace of mind that any obligation that is accrued will be settled. On the other hand, it assures the lender that payment of the debt would be settled in full even if the debtor falls bankrupt or dies.The sources of credit insurance of Taiwan come from both government-managed institutions and private companies as well, formed specifically to offer credit insurance to businesses and individuals. These include Taipei Export-Import Bank of China, which is a government-owned bank providing export credit insurance and other financial facilities. Others are Chartis Taiwan Insurance Comprehensive .Export Credit Insurance, The Coface, Allan-Taiwan Life Insurance, and International credit Brokers Alliance.
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