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Title: The Central Bank of the Republic of China (Taiwan) Act [Authorized Circulars]
Announced Date: May 23, 1935
Date: January 8, 2014
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  [Print]
Chapter I  General Provisions
(Status of the Bank)
Article 1
  The Central Bank of the Republic of China (Taiwan) (hereafter called the Bank)
shall be a government bank and an agency under the Executive Yuan.

(Objectives of the Bank's Operations)
Article 2
  The primary objectives of the Bank's operations shall be:
  1. To promote financial stability;
  2. To guide sound banking operations;
  3. To maintain the stability of the internal and external value of the
      currency;
  4. To foster economic development within the scope of the above
      objectives.

(Head Office, Branch Offices and Representative Offices)
Article 3
 The Bank shall have its Head Office at the seat of the Central Government 
and may establish domestic branch offices and representative offices; and, 
if necessary, may establish representative offices overseas. The establishment 
and dissolution of branch offices and representative offices shall be 
authorized by the Board of Directors and reported to the Executive Yuan 
for approval.

(Capital of the Bank)
Article 4
  The capital of the Bank shall be appropriated from the National Treasury.
  It shall be fully owned by the Central Government and nontransferable.

Chapter II  Organization
(Board of Directors)
Article 5
[Authorized Regulations]
  The Bank shall have a Board of Directors consisting of eleven to fifteen 
directors to be nominated by the Executive Yuan and appointed by the President. 
A Board of Executive Directors composed of five to seven executive directors 
shall be designated among the directors.
  The Governor of the Bank, the Minister of Finance and the Minister of 
Economic Affairs shall be ex officio directors and executive directors. 
Among the directors, there shall be at least one each from the agricultural, 
the industrial and commercial, and the banking sectors.
  Except for the ex officio directors, the directors shall be appointed for a 
term of five years, and may be reappointed upon the expiration of such term.

(Powers and Functions of the Board of Directors)
Article 6
[Authorized Regulations]
  The powers and functions of the Board of Directors shall be as follows:
  1. To examine and approve policies concerning money, credit and foreign 
      exchange;
  2. To examine the adjustment of the Bank's capital;
  3. To approve the operation plans of the Bank;
  4. To examine the budget estimate and financial statements of the Bank;
  5. To examine and approve major by-laws and regulations of the Bank;
  6. To examine or approve the establishment, adjustment and dissolution 
      of the Bank's administrative units, branch offices, representative 
      offices and subsidiary institutions;
  7. To approve the appointment and the removal of the heads of the Bank's 
      administrative units, branch offices, representative offices and 
      subsidiary institutions;
[Related Regulations]
  8. To examine matters proposed by the Directors.
  The Board of Directors may delegate all or part of the above powers and
functions to the Board of Executive Directors. The resolution of the
Board of Executive Directors shall be reported to the Board of Directors
for record and approval.
  The Board of Directors shall establish rules and regulations of board
meetings. Such rules and regulations shall be reported to the Executive
Yuan for record.

(Board of Supervisors)
Article 7
[Authorized Regulations]
  The Bank shall have a Board of Supervisors, composed of five to seven 
supervisors to be nominated by the Executive Yuan and appointed by the 
President. The Minister of Directorate-General of Budget, Accounting and 
Statistics of the Executive Yuan shall be an ex officio supervisor.
  Except for the ex officio supervisor, the supervisors shall be appointed for a
term of three years andmay be re-appointed upon the expirations of such term.
  The Board of Supervisors shall have a chairman to be elected from among
the supervisors.

(Powers and Functions of the Board of Supervisors)
Article 8
[Authorized Regulations]
  The powers and functions of the Board of Supervisors shall be as follows:
  1. To examine the Bank's assets and liabilities;
  2. To audit the Bank's accounts;
  3. To examine the reserves for the issuance of currency by the Bank;
  4. To examine the amount of currency issued by the Bank;
  5. To examine and approve the Bank's financial statements;
  6. To investigate any case involving violation of this Act and the by-laws
      and regulations of the Bank. The result of such investigation shall be
      referred to the Board of Directors for corrective action.

(Governor and Deputy Governors)
Article 9
 The Bank shall have a Governor with the rank of special appointment and 
two Deputy Governors with the rank equivalent to Grade 14; all of whom 
shall be appointed for a term of five years and may be reappointed upon 
the expiration of such term.
 The provision of the preceding paragraph that the rank of Deputy Governor 
is equivalent to Grade 14 shall apply to Deputy Governors appointed after 
the revision of this Act, amended on 8 April 2011, has come into force.

(Duties of Governor and Deputy Governors)
Article 10
  The Governor shall be the chief executive in directing and supervising the
operations of the Bank, shall carry out resolutions of the Board of
Directors, and shall represent the Bank on all occasions. The Deputy
Governors shall assist the Governor in the execution of the above duties.
  The Governor shall be the chairman of the Board of Directors and the
Board of Executive Directors.Whenever the Governor is unable to attend
in person, the Deputy Governor designated to act for the Governor shall
be the chairman.

(Administrative Units and the Ranks and Quotas of the Bank’s Personnel)
Article 11
[Authorized Regulations]
 Administrative units established in the Head Office of the Bank shall be 
named as Department or Office.
 The ranks and quotas of the Bank's personnel shall be tabulated separately.

(Personnel Management)
Article 11-1
 Except for the appointment, removal, remuneration, retirement and indemnity 
of the Governor and Deputy Governors as specified in this Act and other laws, 
the regulations for the appointment, dismissal, remuneration, bonus, welfare, 
performance rating, incentives and discipline, retirement, indemnity, 
severance and other personnel management matters related to the Bank's 
personnel shall be proposed by the Bank, authorized by the Board of Directors 
and reported to the Executive Yuan for approval.

[Authorized Regulations]
Chapter III  Operations
(Business Counterparties)
Article 12
  Unless otherwise specified by law, the Bank's operations shall be
circumscribed to business with the following organizations:
  1. Government agencies.
  2. Banks and other financial institutions.
  3. International and foreign financial institutions.

(Issuance of National Currency)
Article 13
[Authorized Regulations] [Authorized Circulars]
  The currency of the Republic of China (Taiwan) shall be issued by the Bank.
  The currency issued by the Bank shall be the national currency, and shall be
legal tender for all payments within the territory of the Republic of China
(Taiwan).
  The Bank shall establish plants under its management to carry out the
printing and minting of the currency.

[Authorized Regulations]
(Delegation of Issuance of National Currency)
Article 14
  The Bank may, whenever necessary, delegate other government banks to
issue currency in designated regions on its behalf, to be regarded as
national currency. The assets and liabilities pertaining to the issuance of
such currency shall be for the account of the Bank.

(Specifications of Notes and Coins)
Article 15
[Authorized Circulars]
  The basic monetary unit of the national currency is Yuan and the
subsidiary currencies are Chiou and Fen. Ten Fens equal to one Chiou
and ten Chious equal to one Yuan.
  The denomination, composition, form, and pattern of the notes and coins
issued by the Bank shall be proposed by the Bank, for approval by the
Executive Yuan.
  The Bank shall make public the specifications of notes and coins prior to
issuance.

(Reserves against Currency Issuance)
Article 16
   Against currency issued by the Bank and its delegated banks, reserves in
full equivalent value shall be maintained in gold, silver, foreign
exchange, and eligible bills and securities.
  The issuance of coins shall be exempt from reserves.

(Publication of the Amount and Reserve Status of Currency)
Article 17
  The amount and reserve status of currency issued by the Bank and its
delegated banks shall be made public in regular intervals.

(Exchange and Redemption of Currency)
Article 18
[Authorized Regulations] [Authorized Circulars]
  The Bank shall exchange stained or damaged notes and coins deemed to
be unfit for circulation in accordance with certain standards, and destroy
them according to law.
  The Bank may redeem currency issued. Currency redeemed shall no
longer be legal tender. However, the redemption period shall not be less
than one year, during which time holders may exchange redeemed
currency with the Bank.

(Maximum Amount of National Currency Carried into or out of the Territory 
of the ROC)
Article 18-1
[Related Regulations] [Authorized Regulations] [Authorized Circulars]
  The maximum amount of national currency that may be carried or mailed
into or out of the territory of the Republic of China (Taiwan) shall be 
prescribed by the Bank.
[Authorized Regulations] [Authorized Circulars]
  Currency in excess of the aforesaid maximum cannot be transported 
into or out of the territory.

(Handling of Counterfeit or Altered Currency)
Article 18-2
  When financial institutions or other enterprises which are authorized to
engage in foreign exchange operations receive counterfeit or falsified
national currency or foreign currency, they shall retain, void and destroy
those currencies, save that suspicion of criminal involvement shall be
reported to the judicial authority. Regulations on handling counterfeit or
falsified currency shall be stipulated by the Bank.


[Authorized Regulations]
(Issuance of Gold and Silver Coins and Commemorative Notes and Coins)
Article 18-3
[Authorized Regulations]
  The Bank may issue gold and silver coins and commemorative notes and
coins. Regulations governing the issuance of gold and silver coins and
commemorative notes and coins shall be stipulated by the Bank.
  The sale or resale price of aforesaid notes and coins may be higher than
their denomination.

(Accommodations)
Article 19
[Authorized Regulations]
  The Bank may provide the following accommodations to banks:
  1. Rediscounts of eligible bills, with maturity not exceeding 90 days
      for industrial and commercial bills, and 180 days for agricultural
      bills.
  2. Temporary advances not exceeding 10 days.
  3. Refinancing of secured loans not exceeding 360 days.
  The Bank may impose limits on rediscounts or other accommodations to
banks.

[Related Circulars]
(Establishment of Funds)
Article 20
  The Bank, in order to assist economic development, may establish
various funds, using savings deposits re-deposited by financial
institutions and other special funds to refinance medium and long-term
loans disbursed by banks.

[Related Regulations]
(Publication of the Interest Rates of the Bank's Rediscounts and other 
Accommodations)
Article 21
  The interest rates of the Bank's rediscounts and other accommodations
shall be determined by the Bank in the light of prevailing financial and
economic conditions, and made public. However, a branch office of the Bank
may establish its own interest rates on rediscounts and accommodations
according to special local financial conditions, with prior approval by the
Head Office, and make them public.

[Authorized Circulars]
(Exception Management on the Interest Rates of Banks’ Deposits and Loans)
Article 22
  The Bank may, at its discretion and in the light of financial and economic
conditions, prescribe an upper limit for the interest rates of bank deposits,
and approve the range of interest rates on bank loans as proposed by the
Bankers Association.

[Related Regulations]
(Deposit Reserve Ratios)
Article 23
[Authorized Circulars]
  The Bank shall receive and keep reserves against deposits and other 
liabilities of financial institutions which are regulated by the Banking 
Act, and may, at its discretion, adjust various deposit and other 
liability reserve ratios under the following maximum limits in accordance 
with the regulation governing adjustment and audit thereof, which shall 
be stipulated by the Bank:
[Authorized Regulations] [Related Circulars] [Authorized Circulars]
  1. Checking deposits: 25%
  2. Demand deposits: 25%
  3. Savings deposits: 15%
  4. Time deposits: 15%
  5. Other liabilities: 25%
  The scope of aforesaid other liabilities shall be prescribed by the Bank.
[Authorized Regulations]
  The Bank may, whenever necessary and from a specific date, impose on
the increment of the checking deposits, demand deposits and other
liabilities, a marginal reserve ratio which shall not be bound by the
maximum limits on paragraph 1 of this Article.
[Authorized Regulations] [Related Circulars] [Authorized Circulars]
  The Bank may charge the financial institutions having insufficient reserves, 
on the portion of the shortfall, a penalty interest rate not higher than two 
times of that prescribed in Article 21 on unsecured temporary advances as 
stated in subparagraph 2, paragraph 1 of Article 19.

(Reserves for Indemnity Deposited by Investment and Trust Companies)
Article 24
  The Bank shall, in conformity with law, receive and keep reserves for
indemnity deposited by investment and trust companies.

[Authorized Circulars]
(Minimum Ratio of Banks’ Liquid Assets to Liabilities)
Article 25
  The Bank, after consulting with the Financial Supervisory Commission, 
may at its discretion, prescribe for banks a minimum ratio of their liquid 
assets to various liabilities.

[Authorized Regulations] [Authorized Circulars]
(Open Market Operations – Purchasing and Selling Bonds)
Article 26
  The Bank may, in the light of financial conditions, purchase and sell in
the open market the bonds issued or guaranteed by the government, financial
bonds issued by banks and bills accepted or guaranteed by banks.

[Authorized Regulations] [Related Circulars] [Authorized Circulars]
(Open Market Operations - Issuing Certificates of Deposits and Savings Bonds)
Article 27
  The Bank may, for the purpose of regulating monetary conditions, issue
certificates of deposits, savings bonds and short-term bonds, and may
purchase and sell them in the open market.

[Authorized Regulations] [Authorized Circulars]
(Credit Control - Maximum Loanable Ratios of Secured Loans)
Article 28
  The Bank may, whenever necessary, prescribe maximum loanable ratios
selectively on the items used as collateral or mortgage of secured loans
extended by banks.

[Authorized Regulations]
(Credit Control - Amount of Down-payment and Term of Credit)
Article 29
  The Bank may, whenever necessary, prescribe and regulate the amount of
down-payment and the term of credit extended by banks for the purchase
or construction of buildings and the purchase of durable consumer goods.


[Authorized Regulations]
(Administration of Accommodations Extended by Banks to Securities Dealers 
or Securities Finance Companies)
Article 30
  The Bank shall prescribe and regulate the accommodations extended by 
banks to securities dealers or securities finance companies.

[Authorized Regulations]
(Credit Control - Limit on Credit Lines)
Article 31
  The Bank may, whenever it deems that the monetary and credit 
conditions so warrant, prescribe a limit on various kinds of credit 
extended by all, or any category of, financial institutions.

[Authorized Regulations]
(Exchange of Negotiable Instruments and Clearance of Accounts among Banks)
Article 32
  The Bank shall establish clearing houses for checks and settlement of 
accounts among banks at the sites of Head Office or branch offices. The 
Bank may delegate government banks to carry out this function in places 
where the Bank has no branch office. Regulations governing checks 
clearance and settlement of accounts among banks shall be stipulated by 
the Bank.

[Authorized Regulations]
(International Monetary Reserves and its Management)
Article 33
  The Bank shall hold international monetary reserves, and undertake the
overall management of foreign exchange.

(Adjustment of the Demand for and Supply of Foreign Exchange)
Article 34
  The Bank may, in the light of the balance of payments situation, take
measures to adjust the demand for and supply of foreign exchange with a
view to maintaining an orderly foreign exchange market.

(Foreign Exchange Operations)
Article 35
[Authorized Regulations] [Authorized Circulars]
  The Bank shall undertake the following foreign exchange operations:
  1. To draw up plans for foreign exchange management and on
      anticipated receipts and payments;
  2. To authorize and supervise banks and other enterprises engaged in
      foreign exchange operations;
[Related Regulations] [Authorized Regulations] [Authorized Circulars]
  3. To settle the purchase and sale of foreign exchange;
  4. To examine and approve private outward and inward remittances;
  5. To supervise private enterprises' foreign borrowings guaranteed by
      authorized banks, with reference to their management and their
      repayment schedule;
  6. To purchase and sell foreign currencies, bills of exchange and
      securities;
  7. To calculate, compile, analyse and report the receipts and payments
      of foreign exchange;
  8. Other operations relating to foreign exchange.
  Regulations governing requirements of application, the examination 
procedure, approval of authorization, the scope of operations, withdrawal 
of authorization, and other matters which banks and other enterprises 
applying to engage in foreign exchange operations must comply with, 
shall be stipulated by the Bank.

[Related Regulations] [Authorized Regulations] [Authorized Circulars]
(Fiscal Agency and Depository Services for National Treasury)
Article 36
  The Bank shall effect the operations of the National Treasury and manage
the National Treasury's cash accounts. It shall also manage the Central
Governmental agencies' cash accounts, bills, securities, including
receipts and payments, safekeeping and transfers, and the safekeeping of
their other asset documents.
  The Bank may delegate, whenever necessary, the operations mentioned above
to other financial institutions in places where the Bank has no branch office.

(Floatation and Redemption of Government Bonds and Treasury Bills)
Article 37
  The Bank shall undertake the floatation and the redemption of government
bonds, issued domestically or abroad, and treasury bills. The Bank may
delegate, whenever necessary, the above to other financial institutions.

(Financial Examination)
Article 38
  In conformity with the powers and functions authorized by this Act, the Bank, 
if necessary, may undertake the inspection of the operations of financial 
institutions and the targeted examination of such operations as outlined in 
Chapter 3 of this Act; and may direct financial institutions to prepare and 
submit, within a prescribed period of time, accurate financial reports, 
property inventories or other relevant documents and reports.
  If the responsible person(s) or staff member(s) of a financial institution 
or its branch office commit(s) any of the following acts when the Bank dispatches 
officials to inspect or examine its operations, or directs the financial 
institution to prepare and submit accurate financial reports, property 
inventories or other relevant documents and reports in accordance with the 
preceding paragraph, the financial institution or its branch office shall 
be liable to an administrative fine of Two Million New Taiwan Dollars 
(NT$2,000,000) to Ten Million New Taiwan Dollars (NT$10,000,000), imposed 
by the Bank:
  1. Refusing to be inspected or examined;
  2. Concealing or destroying account books and documents related to business 
      or financial conditions;
  3. Refusing to reply or providing false information to inquiries made by the 
      examiner without justifiable reasons;
  4. Failure to provide accurate and complete financial reports, property 
      inventories or other relevant documents or reports in a timely manner.
  The financial institution or its branch office shall seek recourse from the 
responsible person(s) after paying such administrative fines.

(Economic Research)
Article 39
  The Bank shall, to coordinate the formulation of financial policies and 
the execution of its operations, regularly collect economic information, 
compile financial statistics and conduct financial and economic research.

Chapter IV  Budget and Financial Statement
(Budget)
Article 40
  Before the beginning of each fiscal year, the Bank shall prepare a budget 
estimate. The budget estimate shall be examined by the Board of Directors 
and processed in accordance with the Budget Act.

(Financial Statement)
Article 41
  After the close of each fiscal year, the Bank shall settle all accounts 
and prepare financial statements. The financial statements shall be examined 
by the Board of Directors, examined and approved by the Board of Supervisors, 
and processed in accordance with the Financial Statement Act.

(Legal Reserve)
Article 42
  At the close of each fiscal year, the Bank shall set aside fifty per cent 
of its net profit as legal reserve. In case the amount of the accumulated
legal reserve equals or exceeds the Bank's current capital, the percentage
herein prescribed may, subject to the resolution of the Board of Directors
and the concurrence of the Board of Supervisors, be reduced to a level
no lower than twenty per cent.

(Accounting for the Gain or Loss from the Change of Exchange Rate)
Article 43
  The gain or loss from the Bank's assets or liabilities denominated in gold,
silver, foreign currencies and other forms of international reserve,
resulted from changes in parity of the national currency, or changes in the
value, parity or exchange rate of these assets and liabilities relative to
the national currency, shall not be listed in the Bank's annual income
stateatement.
  Any gain from the above changes shall be posted in the Exchange Reserve
Account, and any loss shall be offset in the balance of that Account.

Chapter V   Appendix
(Effective Date)
Article 44
  This Act shall become effective on the date of promulgation.
  The effective date of the Article 23 amendment shall be prescribed by
the Executive Yuan.
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