CDIC has four sources of funds:
a. Capital
Pursuant to the stipulations of the Enforcement Regulations of the Deposit Insurance Act, the total capital of CDIC shall be NT$10 billion.
b. Assessment income
Assessment income is the major source of the deposit insurance reserve fund. In order to enhance the reimbursement capability, CDIC according to the Deposit Insurance Act has set aside a deposit insurance reserve fund comprised the total amount of CDIC's surplus (deduct CDIC's expenses and loss from its revenue), once the accounts had been closed at the end of the business year.
c. Income from the deposit insurance reserve fund
CDIC's primary consideration in the use of its funds is safety. Pursuant to Article 8 of the Deposit Insurance Act, the funds of CDIC shall be deposited with the Central Bank, invested in government bonds and used in other means approved by CDIC's Board of Directors.
d. Special financial accommodation from the Central Bank
According to Article 31 of the Deposit Insurance Act, in order for CDIC to take action in accordance with Articles 28, 29, 30, 41-2 of the Deposit Insurance Act, CDIC may apply to the Financial Supervisory Commission to negotiate with the Central Bank for special financial accommodation with the provision of collaterals. In the case where such accommodation exceeds the amount for which CDIC is able to provide collateral, after the approval by the Executive Yuan (the Cabinet), the excess portion shall be guaranteed by the National Treasury.