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

With respect to the letter of your bank requesting that the deposits that have been re-deposited with the Taiwan Cooperative Bank by your bank but have not yet matured before reorganizing into a commercial bank be permitted to be included as deposit reserves and liquid reserves, our response is provided in Explanation 2.

1.This is in response to the letter of your bank dated September 9, 1997 (Ref. No.Yang-Xin-Yin-0075).

2.From the date on which a credit cooperative is permitted to reorganize into a commercial bank, it shall set aside the reserves requirement for re-deposits placed with the Taiwan Cooperative Bank, whether it chooses to renew or withdraw the re-deposits; however, if the re-deposits with the Taiwan Cooperative Bank have not yet matured and have been exempted from reserve requirements, the Taiwan Cooperative Bank should set aside such reserves. In addition, for re-deposits of less than 1-year maturity placed with the Taiwan Cooperative Bank before the reorganization, the portion that has not matured may serve as liquid reserves, but the portion that has matured and renewed cannot serve as liquid reserves.