Regulatory Alerts2021-12-01
Added · Updated
Directions for Setting Aside Reserves against Re-deposits of Community Financial Institutions
Amended effective January 1, 2022, these directions stipulate reserve requirements for re-deposits made by community financial institutions, defined as credit cooperatives and credit departments of farmers' and fishermen's associations. Credit cooperatives are exempt from reserve requirements for re-deposits at Taiwan Cooperative Bank, while credit departments of farmers' and fishermen's associations are exempt if deposits are one year or less, bear posted interest rates, and do not exceed underlying deposit amounts. Trustee institutions, including Taiwan Cooperative Bank, are responsible for setting aside reserves for exempt transactions and must verify monthly reports from agricultural banks within four business days. Discrepancies in reported data may result in penalty interest charged at 1.5 times the Bank's short-term accommodation rate if errors cause a reserve shortfall.
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