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

Article 7

　With the exception of the provisions under Paragraph 3, actual reserves
set aside by financial institutions for items which require reserves, shall
be limited to the following assets:

　1.Cash in vaults.

　2.Deposits in reserve accounts with the Department of Banking of the
　　Bank or Trustee Institutions.

　3.Deposits that have been approved by the Bank for placement in "Interbank Funds
Transfer Guarantee Special Accounts" with the Department of Banking of the Bank 
or to special accounts of similar properties with Trustee Institutions. The 
maximum amount of offsetting shall be a certain ratio of the required reserves 
for the current period. The ratio shall be announced by the Bank.

 Article 7 Paragraph 2

　 "Reserve accounts" as referred to in Subparagraph 2 of the preceding
Paragraph shall mean the following two types of accounts:

　1.Reserve accounts A: Non-interest bearing accounts that can be
　　deposited or withdrawn at all times by the financial institutions
　　holding the accounts, either by issuing checks or by using the Bank's
　　Interbank Funds Transfer and Settlement System.

　2.Reserve accounts B: These accounts are deposited and withdrawn by
　　financial institutions using passbooks, but are not available except
　　pursuant to the Bank's regulations or upon the exercise of pledge 
　　rights established pursuant to Article 15; such accounts may be
　　interest bearing.

 Article 7 Paragraph 3

　Actual reserves set aside by financial institutions with respect to 
foreign currency items which require reserves are restricted to foreign 
currency deposits placed with the Department of Foreign Exchange of the Bank.