Directions to Regulate the Acceptance of Re-Deposits from Banks

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Title：

Directions for the Central Bank of the Republic of China (Taiwan) to Regulate the Acceptance of Re-Deposits from Banks

Inactive Regulations

Announced Date： March 18, 1999

Amended Date： June 03, 2005

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2. For the purpose of monetary regulation and promoting financial stability, the Central Bank of the Republic of China (Taiwan) (hereafter referred to as "the Bank") promulgates these Directions to entertain banks' applications to re-deposit funds they receive with the Bank (hereafter referred to as "Re-deposit").

4. The financial institutions that the Bank will accept the Re-deposits from are limited to the following:

(1)Agricultural banks (Farmers Bank of China, Taiwan Cooperative Bank, Land Bank of Taiwan and Agricultural Bank of Taiwan) which accept deposits from Grassroots Financial Institutions (credit cooperatives, credit departments of farmers' associations and credit departments of fishermen's associations ).

(2)Banks that have been approved by the Bank on a case-by-case basis to coordinate in the implementation of the government's monetary policy.

4. A bank shall comply with these Directions for applying for making Re-deposits. The Re-deposit shall be made subject to the Bank's approval after the Bank has taken into consideration of the prevailing economic and financial situation.

6. The maximum term of Re-deposit shall not exceed one year. The interest rate for the Re-deposit shall be determined as follows:

(1)The interest rate on the Re-deposits by the financial institutions listed in the first Paragraph of Direction 2 shall be the simple floating rate offered by agricultural banks for deposit with like maturities as in effect at the time of such Re-deposit.

(2)The interest rate on the Re-deposits by the financial institutions listed in the second Paragraph of Direction 2 shall be the simple floating rate offered by the Bank's designated banks.

6. At maturity, a bank may apply to rollover a Re-deposit on the terms set out in Direction 4. The rollover Re-deposit shall bemade subject to the Bank's approval; whenever necessary, the Bank may also request banks to rollover the principal of the Re-deposit.

8. A bank may apply to terminate a Re-deposit early prior to the maturity day. Early termination of a Re-deposit shall be subject to the Bank's approval. The interest on such an early termination of Re-deposit shall be calculated as follows:

(1)If the period of Re-deposit is less than one month, no interest shall be paid.

(2)If the period of Re-deposit is more than one month but less than three months, the interest shall be calculated based on the simple floating rate for an one-month deposit as in effect at the time of Redeposit.

(3)If the period of Re-deposit period is more than three months but less than six months, the interest shall be calculated based on the simple floating rate for a three-months deposit as in effect at the time of Re-deposit.

(4)If the period of Re-deposit is more than six months but less than nine months , the interest shall be calculated based on the simple floating rate for a six-months deposit as in effect at the time of Redeposit.

(5)If the period of Re-deposit is more than nine months but less than one year, the interest shall be calculated based on the simple floating rate for a nine-months deposit as in effect at the time of Redeposit.

8. To meet business needs, a bank may use Re-deposits with the Bank as collateral to apply for accommodations and such accommodations on collateral shall be provided subject to the Bank's approval. The interest rate shall be calculated according to the Bank's relevant rules regarding interest rates on accommodations with collateral.