President Chen Shui-bian received important executives of the National Agricultural Bank this afternoon. They include Chairman Lin Peng-lang and other officials. Besides hearing the report of the National Agricultural Bank's establishment, its administration and operations, the president also exchanged opinions with the bank officials.
The president said that the operations of the National Agricultural Bank will be officially launched tomorrow. The bank is not only considered as an important institution in terms of Taiwan's agricultural finance, but it is also seen as a milestone of the entire country's development. Since long ago, the Fishermen's Association has been helping the fishermen without fanfare, as the backbone of Taiwan's agricultural development. If it were not the Fishermen's and the Farmers' Associations, Taiwan would not have been able to experience its achievements in agriculture and the economical miracle would not have happened.
The president also pointed out that the National Agricultural Bank's establishment has sufficientlly reflected the government's determination to introduce reform as well as pragmatism. In the past, due to the organizational defects of some of the credit departments of the Fishermen's Associations and Farmers' Associations and poor management, the non-performing loan ratio had been high and a thorough restructure had been called for. Since agricultural finance also has its particularities and is not an operation that regular banking institutions could suitably handle and after considering all factors, the government had decided to consolidate all the operations of the credit departments of these associations and put them under the supervision of the Council of Agriculture. The establishment of the National Agriculture Bank as the top level of management for these credit departments is aimed at strengthening the utilization of agricultural capital, raising the performance quality of the credit departments and stabilizing the order of agricultural finance.
The content of the president's speech is as follows:
The National Agricultural Bank is going to be officially launched tomorrow. This is not only considered as an important event in terms of Taiwan's agricultural finance, but it is also seen as a milestone in the country's development. Since long ago, the Fishermen's Associations and Farmers' Associations have been helping the fishermen and farmers without fanfare and are lauded as the backbone of Taiwan's agricultural development. If it were not the contributions of the Fishermen's and the Farmers Associations, Taiwan would not have been able to experience its achievements in agriculture and the economical miracle would not have happened.
Following the changes of time, the Fishermen's and the Farmers' Associations have been depending more and more on the revenues from their credit departments. If the credit departments run into problems, it will not only affect the associations' operations and their survival but will also cause a direct impact on the financial market's order.
Therefore, only through employing correct and healthy methods by the credit departments could the Fishermen's and the Farmers' Associations' operations be sustainable and thrive, bringing absolute insurance to the savings and livelihood of the farmers and fishermen. The passage of the Agricultural Finance Act and the establishment of the Agricultural Finance Bureau and the National Agricultural Bank successively are the most decisive step to strengthen the operation of the credit departments of these associations. It is also the most important attempt to revive Taiwan's agricultural economy.
The establishment of the National Agricultural Bank shows the government's determination to pursue reform and pragmatism. In the past, due to organizational defects of some of the credit departments of these associations and coupled with poor management, non-performing loan ratio at some of these organizations had been high, leading to the necessity of launching thorough restructure and consolidation. But due to the special characteristics of these credit deparments which could not be suitably superseded by regular banks, and after considering all factors, the government had finally decided to consolidate all the operations of these credit departments and put them under the supervision of the Council of Agriculture and at the same time setting up the National Agriculture Bank, aiming at strengthening the utilization of agricultural capital, raising the performance quality of the credit departments and stabilizing the agricultural finance order.
With less than a year's time, the National Agricultural Bank has come into existence, adequately showing the efficiency of those who took part in the organizing work. A-bian is grateful for their work and at the same time confident that through the supervision of the Council for Agriculture and the management of the National Agricultural Bank, Taiwan's agricultural finance would appear in a new face, offering the agricultural public all-round services and enhancing the vitality of the farming and fishing resources.
The National Agricultural Bank is organized with the participation of all the island's fishermen's associations and farmers' associations. Its functions include the handling of saving deposits and loaning operations of the credit departments of these associations. The bank has sufficient capital and outlets to provide credits to all the 1,144 service stations of these credit departments. The National Agricultural Bank, as a matter of fact, is a banking institution bestowed with the richest resources. A-bian has faith that under your leadership, the bank will achieve a successful performance, and the credit departments of the associations will no longer be a risk factor in the financial system but become a strong competitor in the financial market.
The expectations of all the farmers and fishermen lie on your shoulders, gentlemen, as well as the historical task to sanitize the countrys financial system. This is a great deal of responsibility. Challenges and trials are expected when an unusual task is yet to be achieved. Let's encourage each other in our endeavors. Finally, I wish the National Agricultural Bank's operations a great success. Thank you my friends. May you the best of everything. Thank you.