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[Law Basis]
[Print]
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1.The Central Bank of the Republic of China (Taiwan)(hereafter referred
to as "the Bank") has prescribed these Directions for processing of
various accommodations to banks, such as rediscounts of eligible bills,
temporary advances and refinancing of secured loans, pursuant to
Article 19 of the Central Bank of the Republic of China (Taiwan) Act.
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2.Unless otherwise provided by these Directions, banks that have access
to the Bank's accommodations are those that hold deposit reserve
accounts with the Department of Banking of the Bank (including
domestic banks, Taiwan branches of foreign banks, and the Chunghwa
Post Co., Ltd.).
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3.Bills eligible for rediscounts are banker's acceptances, commercial
acceptances and promissory notes generated through actual transactions
in the course of producing, manufacturing, and selling by public and
private enterprises.
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4.Rediscount limits shall be set by the Bank based on the scale of the
bank deposits; however, when necessary, banks may be exempt from
this requirement with approval of the Bank.
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5.Rediscounts will come to term on the maturity dates of the bills. For
industrial and commercial bills, the maximum term shall not exceed
90 days; for agricultural bills, the maximum term shall not exceed
180 days.
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6.Rediscounted bills must be registered and endorsed by the borrowing
bank.
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7.Interest deducted in advance for a rediscount shall be calculated at
the rediscount rate published by the Bank. Prior to the maturity of
rediscounted bills, banks may repurchase the said bills from the Bank,
and the Bank shall refund the rediscount interest for the unmatured
portion.
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8.If a rediscounted bill, presented for payment at maturity, is
dishonored, the Bank shall immediately record a debit to the
discounting bank's deposit reserve account in the amount of the bill,
and return the said bill to the discounting bank.
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9.The term of temporary advances shall not exceed ten days. The
following types are provided:
(1) Temporary advances with eligible collateral;
(2) Temporary advances without eligible collateral;
(3) Intraday overdrafts.
Directions 10 to 13 shall not apply to the operations conducted
by the Bank under Subparagraph 3 of the preceding Paragraph.
Recipients of the said operations include bills finance
corporations with guarantee deposits at the Department of Banking
of the Bank, where the relevant directions shall be established
by the Bank.
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10.In applying for temporary advances, banks shall submit to the Bank
rediscounted eligible bills, government bonds, the certificates of
deposit issued by the Bank, or other securities approved by the
Bank as collateral.
In applying for temporary advances, a bank under the following
conditions may be exempt from providing collateral or additional
collateral, provided that such banks shall submit promissory notes
to be paid from their banking deposit accounts with the Department
of Banking of the Bank:
(1) Experiencing difficulties in providing the collateral listed
above when applying to the Bank for temporary advances to meet
the reserve requirement;
(2) Applying for temporary advances in compliance with the Bank's
monetary policy, where the applied amount is within the limit
of the applicant bank's reserves account B.
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11.Interest on temporary advances shall be calculated in accordance
with the following provisions, and shall be paid in a lump sum on
the maturity date or prepayment date:
(1) For banks that provide eligible collateral, interest shall be
calculated at the Bank's published interest rate (in effect at
the time of the temporary advances) on refinancing of secured
loans;
(2) For banks that do not provide eligible collateral, interest
shall be calculated at the Bank's published interest rate (in
effect at the time of the temporary advances) on temporary
advances;
(3) For banks exempt from providing additional collateral when
applying,in compliance with the Bank's monetary policy, for
temporary advances of amounts within the limit of their reserves
account B, interest shall be calculated at the Bank's published
interest rate (in effect at the time of the temporary advances)
on refinancing of secured loans.
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12.The total amount applied for temporary advances in a given month
shall not exceed ten percent of the required reserves of the applicant
bank in the same month. In the event that this limit is exceeded,
interest on the amount above the limit shall be calculated at 1.2
times the Bank's published interest rate on temporary advances.
However,banks applying for temporary advances in compliance with the
Bank's monetary policy shall not be subject to this restriction.
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13.For applicant banks that have already applied to the Bank for
temporary advances in two consecutive months, starting from the
third month, the interest shall be calculated at 1.2 times the Bank's
published interest rate on temporary advances. However, banks applying
for temporary advances in compliance with the Bank's monetary policy
shall not be subject to this restriction.
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14.The Bank's refinancing of secured loans for banks shall be limited
to the following:
(1) Loans extended under the approval of the government and the Bank;
(2) Loans extended in compliance with the Bank's monetary policy;
(3) Emergency funding approved by the Bank;
(4) Loans to those small and medium-sized enterprises affected by
severe pneumonia with novel pathogens (COVID-19).
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15.For funding needs as the result of extending the loans specified
in Subparagraphs 1, 2 or 4 of the preceding Direction, banks may
submit a letter to the Bank to apply for refinancing of secured loans.
Those banks not providing securities approved by the Bank as collateral
shall further submit a promissory note for payment from their banking
deposit accounts established with the Department of Banking of the Bank.
Banks that apply for refinancing of secured loans in accordance with
Subparagraph 4 of the preceding Direction shall process such loans in
accordance with the operating rules of the Bank.
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16.For emergency funding requirements caused by the following conditions,
banks may submit a letter of explanation to the Bank, along with
the Bank-approved securities or reserves accounts B as collateral, to
apply to the Bank for discount of secured loans:
(1) Occurrence of unusual depositor withdrawals.
(2) Occurrence of unusual depositor withdrawals at financial
institutions responding to the need to remit deposit reserves to
the said bank, when the said bank undertakes emergency funding
accommodations according to procedures.
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17.The term of the Bank's refinancing of secured loans shall not exceed 360 days.
The interest shall be calculated at the Bank's published interest rate on
refinancing of secured loans (in effect at the time that the refinancing is
made).However, for refinancing that meets applicant banks' funding needs as
specified in Subparagraph 1, 2 or 4 of Direction 14, the interest rate may
receive a markdown, with approval of the Bank on a special case basis.
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18.Regarding the principal and interest for the various accommodations
payable to the Bank, borrowing banks may effect payment from their
banking deposits accounts established with the Department of Banking
of the Bank using the online procedures of the Bank's Interbank Funds
Allocation and Clearing System.
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19.In deciding whether to approve or reject applications for various types
of accommodations, the Bank may refer to the applicant bank's credit
rating, the effectiveness of client's credit background checks, the
bank's general reserve position, the purpose of the accommodation,
cooperation with the Bank's monetary policy, and any major violations
or bad records in the past year.
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20.In applying to the Bank for various types of accommodation, the
applicant shall carry out all related procedures at the Discount
Window Division of the Bank's Department of Banking.
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21.The provisions of Directions 9 to 20 shall apply, mutatis mutandis,
to trust and investment companies.
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