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

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.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.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.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.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.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.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. 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.