D. Stabilizing the Financial Order throughActiveAdvocacy
In conjunction with blanket guarantee policy, the CDIC actively engaged in advocacy. These
included the filmingof an informational videoon theblanket guarantee system featuring theROC
Premier and aired intensively on television. The CDIC also encouraged financial institutions to
download the videoand show it at theirplacesof business andon theirwebsites.Other advocacy
measures included producing posters publicizing the blanket guarantee system and asking
all insured institutions to post them. The CDIC also took out advertisements in newspapers,
magazines, online channels, financial and economic publications, and public transport vehicles
to strengthendepositor’s awareness of deposit insurance and achieve theobjectiveof stabilizing
the financial order.
(3) ResponseMeasures for theBlanketGuaranteeReturning toLimitedCoverageSystem
As the economy recovered, financial markets stabilized, and depositors regained confidence,
thegovernment returned to a limited coverage systemon January 1, 2011.At the same time, the
following coordinatedmeasureswereadopted:
A. Increasing theMaximumCoverage and Expanding the Scope of Coverage
In response to the end of the blanket guaranteemeasure and to boost depositor confidence in
the return to the limited coverage system, the FSC, theMOF and the Central Bank announced
on August 12, 2010, that, in reference to the CDIC's report on "Response Measures for the
Expiration of Blanket Deposit Guarantees in Taiwan," themaximum deposit insurance coverage
amount wouldbe raised toNT$3millioneffective from January1, 2011. Thispolicy increased the
ratio of deposit accounts fully covered by deposit insurance to 98.6%. Furthermore, to accord
with international trends and strengthen depositor confidence in the limited deposit coverage,
the CDIC expanded the coverage scope to include foreign currency deposits and interest on
deposits, consistentwith theamendedArticles12and13of
theDeposit InsuranceAct
.
B. Adjusting Deposit Insurance Premiums to Accelerate Accumulation of the Deposit Insurance
Payout Special Reserve
Because the CDIC's general deposit insurance payout special reserve fund, which had been
used in line with government policies and in combination with the Financial Restructuring Fund
toenable56problem financial institutionswithunsoundoperations towithdraw from themarket
had become seriously insufficient, the Legislative Yuan's FinanceCommittee resolved to require
that the CDIC's accumulated reserves achieve a target of 2% of covered deposits by the year
2016. Furthermore, in conjunction with raising themaximum coverage fromNT$1.5million to
NT$3million, the FSC instructed the CDIC to adjust deposit insurance premiums to strengthen
the CDIC's ability to undertake risk. The CDIC therefore actively deliberated adjustments to the
deposit insurance premiums. The adjusted rates were approved by the FSC inNovember 2010
and implemented inJanuary2011, as follows:
34
Central Deposit Insurance Corporation 30Years inRetrospect
