Ten Trillion in Idle Funds and Mystery of Disappearing Growth in Taiwan

  Ten Trillion in Idle Funds and Mystery of Disappearing Growth in Taiwan

United Daily News Editorial (Taipei, Taiwan)

October 17, 2017

 Translation of an Excerpt

The Financial Supervisory Commission made public last week that there existed excessive idle money in domestic banks; up to the end of August, the bank deposits surprisingly totaled NT$36 trillion. Loans extended, on the other hand, stood at only NT$26 trillion, showing that idle money broke through the NT$10 trillion mark, a historic high.

That the banking system has NT$10 trillion of idle deposits that could not be lent out explains the crux of Taiwan’s economic slowdown is not because Taiwan has become "poor," but rather the low willingness of domestic investment, as well as the receding of entrepreneurs’ innovation and zeal. And if we ask the font of the declining willingness in domestic investment, the industry circles all point to the five shortages, i.e., water, power, labor, land, and talent. Wang Ping et al., academicians of the Academia Sinica, on the other hand, have argued that legislation, environmental impact assessments, and excessive conservatism toward Mainland China are the "three great dark forces.” In addition, we believe that more importantly, it is the long-term interference of political factors, leading to uncertainties on the part of investors. For instance, politicians often launch “anti-rich” struggles, stir up labor-management confrontations, initiate struggles between "Blue and Green" and struggles over "identity" so much so that entrepreneurs could not avoid the bothering choices of political sides, even being wantonly accused of the crime of "selling out Taiwan" and being tarred as a result. Under such polluted atmospherics, how could we stir up the fighting spirit for domestic investment?

When Taiwan was in the era of difficulties and predicament, no matter how hard the people’s livelihood was, they would even borrow money to invest in industries, and the government would frequently introduce incentive programs to encourage investments. Now, we have NT$10 trillion in idle funds deposited in domestic banks bearing no interest, nor being able to produce enterprises, let alone creating new assets and employment opportunities. With the arrival of the new era of peace and ease, plus the fermentation of the simple pleasures of life curse, as well as the never-ending political bickering, is this truly the destiny of democratic Taiwan?

Attachment : none