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

1.

1. 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").

2.

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

(1)Banks (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.

3.

3. 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.

4.

4. The maximum term of Re-deposit shall not exceed one year. The interest rate for the Re-deposit shall be a simple fixed rate or floating rate and shall be determined by any of the following interest rates:

(1)The interest rate for time deposits for the same tenor offered by a bank for Re-deposits.

(2)The average interest rate for time deposits for the same tenor offered by the Bank's designated banks (Bank of Taiwan, Land Bank of Taiwan, and Taiwan Cooperative Bank).

(3)The issuing interest rate for certificates of deposits for the Bank's open market operations.

5.

5. 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.

6.

6. A bank may terminate a Re-deposit early prior to the maturity date, subject to the Bank's approval. The interest on early termination of Re-deposit shall be calculated as follows:

(1) Where the interest rate for the Re-deposit is determined in accordance with subparagraph 1 or 2 of Direction 4, the following shall apply:

i. No interest shall be paid, if the duration of Re-deposit is less than one month.

ii.One-month interest shall be paid based on the simple rate in effect at the time of Re-deposit, if the duration of Re-deposit is over one month but less than three months.

iii.Three-month interest shall be paid based on the simple rate in effect at the time of Re-deposit, if the duration of Re-deposit is over three months but less than six months.

iv. Six-month interest shall be paid based on the simple rate in effect at the time of Re-deposit, if the duration of Re-deposit is over six months but less than nine months.

v. Nine–month interest shall be paid based on the simple rate in effect at the time of Re-deposit, if the duration of Re-deposit is over nine months but less than one year.

(2) Where the interest rate for the Re-deposit is determined in accordance with subparagraph 3 of Direction 4, the following shall apply:

i.No interest shall be paid, if the duration of Re-deposit is less than thirty days.

ii.Thirty-day interest shall be paid based on the simple rate in effect at the time of Re-deposit, if the duration of Re-deposit is over thirty days but less than ninety-one days.

iii.Ninety-one-day interest shall be paid based on the simple rate in effect at the time of Re-deposit, if the duration of Re-deposit is over ninety- one days but less than one hundred and eighty-two days.

iv.One hundred and eighty-two-day interest shall be paid based on the simple rate in effect at the time of Re-deposit, if the duration of Re-deposit is over one hundred and eighty-two days but less than three hundred and sixty-four days.

7.

7. 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.

8.

8. To regulate the demand and supply of foreign exchange and to promote financial stability the Bank may, if deemed necessary, accept foreign currency re-deposits from banks.

The provisions in the subparagraph 2 of Direction 2, Direction 3, subparagraphs 1 and 2 of Direction 4, Direction 5, subparagraph 1 of Direction 6 and Direction 7 herein shall apply mutatis mutandis to the acceptance of foreign currency re-deposits by the Bank. However, the Bank may set out separate rules with respect to the tenor, interest rates, rollover and rates on accommodations for such re-deposits.