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

To meet funding needs of credit cooperatives, the “Regulations for Credit Cooperatives to Participate in the Interbank Call Loan Market” has been amended as provided in the Explanations below. Please forward the same, and act accordingly.

1.With respect to the regulations for credit cooperatives to participate in the interbank call loan market, the CBC has already required Taipei Interbank Money Center to handle the matter as set out in a Letter dated July 29, 1994 (Ref. No. Tai-Yang-Ye-906).

2.To meet the funding needs of credit cooperatives, provisions in the relevant regulations relating to members’ minimum equity and the minimum aggregate amount of deposits are amended as follows: the members’ equity is reduced from NT$2 billion or more to NT$1.5 billion or more, and the aggregate amount of deposits is reduced from NT$40 billion or more to NT$30 billion or more.

3.Any credit cooperative which meets these requirements but has severe operational or management shortcomings on record is prohibited from participating in the interbank call loan market. The Taichung City Sixth Credit Cooperative complies with relevant requirements and regulations, and accordingly should be permitted to participate in the interbank call loan market.

4.The delinquency ratio of the Taipei City Second Credit Cooperative did not conform to regulations at the end of 1994 and must therefore be improved within three months. If this institution fails to improve within the prescribed period, its participation in interbank call loan markets shall be withheld.