Bank of Taiwan

The Bank of Taiwan is a bank based in Taipei City of Taiwan. The Bank of Taiwan is owned by the Government of Taiwan. Initially, when the Bank of Taiwan was established, it was known as Central Bank of Taiwan. It was at a time when Taiwan was a colonizing power of Japan. For the cause of economic development, the 'Bank Act of Taiwan' was announced in 1897. To boost up the private sectors of Japan like the Mitsui Group and Mitsubishi to invest in Taiwan, the Bank of Taiwan was started in 1899. It was a joint collaboration between Nippon Kangyo Bank and Bank of Taiwan in Taiwan island that the Bank of Taiwan was established. But the Bank of Taiwan faced a monetary crisis in 1927 when it was saved by the assistance from the Bank of Japan. When the Japanese were in power of Taiwan, the branches of the Bank of Taiwan stretched to China and Southeast Asia.

The Bank of Taiwan had a turn around after the Japanese rulers surrendered in 1945 and Taiwan was freed. The ROC government took charge of the Bank of Taiwan. They took the charge to issue the old Taiwan dollars which were known as Taiwan Nationalist Yuan. In 1949, the Bank of Taiwan brought out the New Taiwan dollar.

But Taiwan suffered a political setback when the mainland was lost to Kuomintang in the Chinese Civil War. At that point of time the Bank of Taiwan took on a more centralized role as the central bank of the Republic of China until the Central Bank of China started functioning in 1961.

At present, the governance of the Bank of Taiwan has been transferred to the Republic of China Finance Ministry. The new Taiwan dollars are no longer issued by the Bank of Taiwan but by the Central Bank of China.