Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

1. These Directions are prescribed pursuant to the execution of the provisions of Paragraph 1, Article 6 of the Regulations Governing the Audit and Adjustment of Deposit and Other Liability Reserves of Financial Institutions (hereafter referred to as “these Regulations”).

2. To set aside reserves, each regional commercial bank should open an “interbank deposits- reserves account A” and an “ interbank deposits- reserves account B” at the Bank of Taiwan.

3. Each regional commercial bank shall submit the reserve adjustment form and daily statements to the Bank of Taiwan to handle the adjustment for reserves account B within the deadline set forth in Article 11 of these Regulations. If it needs to refund the reserves, the Bank of Taiwan will make payment to the regional commercial banks first and then be reimbursed [by the Central Bank of the Republic of China (Taiwan) ]. The Bank of Taiwan shall re-deposit all the deposits under the “interbank- reserves accounts B” with the Central Bank of the Republic of China (Taiwan) within the deadline set forth in the Article 13 of these Regulations and withdraw the reserves refunded by the Bank of Taiwan from the Central Bank of the Republic of China (Taiwan).

4. In order to handle the matters related to the re-deposit of the reserves account B of each regional commercial bank with the Central Bank of the Republic of China (Taiwan), the Bank of Taiwan shall open a“banks deposits-reserves account B (the consolidated and re-deposited special account of the Bank of Taiwan entrusted with the reserves of the regional commercial banks) with the Department of Banking of the Central Bank of the Republic of China (Taiwan)”.

5. With respect to the interest payable by each regional commercial bank to the Bank of Taiwan pursuant to Article 14 of these Regulations, the Bank of Taiwan shall transfer the funds to the Central Bank of the Republic of China (Taiwan) when adjusting the consolidated and re-deposited special account of the reserves.

6. The Bank of Taiwan shall audit the reserves deposited by each regional commercial bank based on the reserve adjustment form and daily statements submitted. The Bank of Taiwan shall ask the bank to correct any error or omission detected. If a serious false is uncorrected, the Bank of Taiwan shall report the case to the Central Bank of the Republic of China (Taiwan).

7. The Central Bank of the Republic of China (Taiwan) may collect interest on the deposit reserve accounts A entrusted to the Bank of Taiwan.