Regulatory Alerts2005-06-03
Added · Updated
Directions for Handling Legally Required Reserves against Re-deposited Deposits of Grassroots Financial Institutions
The document establishes reserve calculation and handling rules for Grassroots Financial Institutions, defined as credit cooperatives and credit departments of farmers' or fishermen's associations. Credit cooperatives are exempt from setting aside reserves for funds re-deposited with the Taiwan Cooperative Bank, while credit departments of farmers' or fishermen's associations are exempt if funds are re-deposited in Agricultural Banks under specific term, interest, and amount limits. Institutions must submit calculation reports and adjustment forms to Trustee Institutions, which verify data against Agricultural Banks and charge penalty interest at 1.5 times the short-term accommodation rate for reserve shortfalls caused by uncorrected data errors.
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