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

Subject:
Explanation 2 below responds to your proposal that re-deposits of a credit 
cooperative with terms less than 1-year at banks or other credit cooperatives that 
are not designated banks, may be treated as eliqible liquid reserves.  Pleses take 
note and forward the same to your member institutions.

Explanations:
1.This is in reponse to your letter dated October 5, 2005. ((Ref. No. Cyuan-Sin-
　Lian-Tze-940721)
2.The CBC agrees that re-deposits of a credit cooperative with terms less than 1-
　year at banks or other credit cooperatives that are not designated banks, in 
　accordance with Article 4 of the "Regulations for Funds to be Re-Deposited by and 
　Accommodated to the Credit Cooperatives", may be treated as eliqible liquid 
　reserves provided the long-term credit ratings of the non-desingated banks or 
　credit cooperatives are twA- or higher by Taiwan Rating Corporation or 
　equivalent. The net eligible liquid reserves shall also include re-deposits of 
　the credit cooperative at designated banks but deduct those received from other 
　financial institutions.