In many Western countries, a culture of compliance is important not only because of the threat of ruinous lawsuits and fines, but because of an implicit sense that the financial sector may have been given too much space to run in the first place. By finding the bad apples, lawmakers and regulators can hope to defend the interests of the existing economic order.
In Taiwan, however, financial institutions were never given much latitude in the first place. The state is involved in the banking sector to a much deeper degree than in many other industrialized economies. And financial firms generally must obtain prior permission to engage in business activities, rather than taking initiative and waiting to see the consequences. Given this institutional setup, it may seem that the problems of organizational culture and conduct risk have already been solved.
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