Directions Governing the Central Bank of the Republic of China (Taiwan) Special Financial Accommodations to the Central Deposit Insurance Corp., Ltd.

Jump to the main content block

Laws and Regulations Database of the Central Bank of the Republic of China-Article Content

Article Content

Title：

Directions Governing the Central Bank of the Republic of China (Taiwan)Special Financial Accommodations to the Central Deposit Insurance Corp., Ltd.

Inactive Regulations

Announced Date： September 01, 1994

Amended Date： February 24, 2000

[Print]

[Print-NoSerialNumber]

(Financing Basis)

1.

1. The Central Bank of the Republic of China (Taiwan)(hereafter referred to as "the Bank"), pursuant to the provisions of Article 20 of the Deposit Insurance Act, has prescribed these Directions for the processing of special financial accommodation to the Central Deposit Insurance Corporation ("the CDIC").

(Reasons of Financial Accommodation)

2.

2. In any action which the CDIC takes pursuant to Article 15, Article 15-1, Article 15-2, Article 16, and Article 17 of the Deposit Insurance Act, the CDIC may ask the competent authority (the Ministry of Finance) to negotiate with the Bank to receive its approval and obtain special financial accommodation.

When providing insured institutions with financial assistance pursuant to the aforesaid provisions, in the event that the CDIC applies to the Bank for special financing, the following documents of the institutions in question shall be submitted as quickly as possible, along with a general evaluation, explaining the reasons for providing financial assistance, for the Bank's reference in determining whether to approve the financing, and whether additional conditions are stipulated for approval:

(1) Evaluation information relating to liquidity and balance sheets.

(2) Detailed information concerning plans for repayment.

(3) Related information including plans for improving operations.

( Amount of Accommodation)

3.

3. The CDIC shall weigh and consider its own funding situation and the actual funding requirements of individual cases when submitting requests to the Ministry of Finance to arrange for approval of the amount of accommodation from the Bank.

(Term of Accommodation)

4.

4. The CDIC shall submit requests to the Ministry of Finance to arrange for the Bank approval of the term of accommodation in accordance with progress in the processing of individual cases.

(Interest Rate)

5.

5. The financing interest rate shall be charged at the floating interest rate for accommodations with collateral, as published by the Bank.

(Procedures of Accommodation)

6.

6. The FDIC may provide with government bonds, Certificates of Deposit of the Bank and other eligible collaterals to apply for financial accommodation from the Bank. That part of the aforesaid financial accommodation, which exceeds the collateral provided by the CDIC, shall be guaranteed by the national treasury. If the guarantee goes beyond the net worth of the CDIC, the competent authority shall together with the Bank submit such guarantee to the Executive Yuan for its pproval.

(Allocation and Repayment)

7.

7. Upon the Bank approval of special financing, the CDIC shall execute an agreement with the Bank and stipulate that the Bank shall allocate the funds to the CDIC account at the Department of Banking of the Bank, or into an account designated by the CDIC. The Bank shall deduct repayments from the CDIC account at the Department of Banking of the Bank on maturity date.

In the event that the CDIC recovers the aforesaid funds prior to the maturity date, the CDIC shall promptly notify the Bank to deduct recovered portions from its account in advance.