Regulatory Alerts2023-07-24
Added · Updated
Directions for the Central Bank of the Republic of China (Taiwan) Accommodations to Banks
The Central Bank of the Republic of China (Taiwan) prescribes rules for processing rediscounts, temporary advances, and refinancing of secured loans for banks holding deposit reserve accounts. Rediscount terms are capped at 90 days for industrial and commercial bills and 180 days for agricultural bills, while temporary advances are limited to ten days and capped at ten percent of the applicant's required monthly reserves. Interest rates for temporary advances are set at published rates, with a 1.2 times multiplier applied to amounts exceeding the reserve limit or for consecutive monthly applicants, unless the advance complies with monetary policy. Refinancing of secured loans is restricted to specific government-approved, monetary policy-compliant, or emergency funding needs, with terms not exceeding 360 days and interest calculated at published rates, subject to potential markdowns for certain policy-aligned loans.
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