Regulatory Alerts2024-04-01
Added · Updated
Directions for Auditing Liquidity of Financial Institutions
The Central Bank of the Republic of China (Taiwan) prescribes liquidity reserve requirements for financial institutions, including banks, agricultural financial institutions, and credit cooperatives. Eligible liquidity reserve assets are limited to specific New Taiwan Dollar-denominated instruments, and the daily liquidity reserve ratio must not fall below a minimum standard set by the Bank in consultation with the Financial Supervisory Commission and the Ministry of Agriculture. Financial institutions must submit daily reserve data and monthly maturity gap reports, with specific submission deadlines and audit procedures defined for different institution types. If reserve ratios or maturity gap parameters fall below minimums, institutions must promptly report the shortfall, and the Bank may demand adjustments or conduct on-site examinations.
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