A. Helping supervisory bodies to establish reporting systems or joint sharing mechanisms to
access financial andbusiness information of insured institutions
I. Insured Banks: The CDIC continues to access financial and business information for banks
through the Central Bank. In addition, a single window reporting system for the banking
industrywas officially launched in 2007, alongwith the establishment of relatedmechanisms
for sharing supervision andmanagement information. At present, the CDICmainly uses this
system toaccess financial andbusiness information reportedmonthlybybanks.
II. Insured Credit Cooperatives: The CDIC asks credit cooperatives to report basic asset/
liability andprofit/loss data through an internet transmission system. It alsohas access to the
financial and business information reported by these institutions through the FSC's "Online
DeclarationSystem for Financial Institutions."
III. InsuredCreditDepartmentsof Farmers' andFishermen'sAssociations:TheBureauofAgricultural
Finance,Council ofAgricultureestablishedan internet reportingsystem in2005.Thissystemwas
subsequentlymadeavailable to theCDIC toaccess related financial andbusiness information.
B. Actively Applying Powers under Article 22 of
theDeposit InsuranceAct
to EstablishRisk-oriented
Off-siteMonitoringMechanisms and Effectively Enhance the Efficacy of theseMechanisms
After the amendment of Article 22 of
theDeposit InsuranceAct
in January 2007, theCDIC used
its account officer system to actively collect a wide range of financial and business information
of insured institutions. Paragraph 2, Article 22 of the Act further empowers account officers to
request insured institutions to report related financial and business information if they discover
warning signals that could affect theCDIC’s insurance risk, aswell as to conduct special audits of
financial reports.Dependingon thematerialityof thewarning, theofficersmaywriteanoperation
analysis report andmore thoroughly and continuously monitor changes in operational risk to
duly recommendnecessary improvements.
C. Establishing a Call Report Data Rating System to Promptly Reflect Operational Risk at Insured
Institutions
In order to provide guidance to insured institutions in controlling operational risk, the CDIC
adopted capital adequacy ratio (CAR) and theComposite Score of the ExaminationData Rating
System (CSEDRS) as the two risk indicators in calculating risk grades for risk-based premiums
under the “
Revised Implementation Scheme for the Deposit Insurance Risk-based Premium
System
” approvedby the FSC in 2007. TheCSEDRS risk indicator was subsequently changed to
agrading scorebasedon the financial andbusiness information reportedby insured institutions.
The CDIC also began to establish a Call Report Data Rating System so that the grading system
could effectively and immediately reflect the operational risk at insured institutions and
enablemore appropriate risk-based premiums. The systemwas completed in June 2011 and
36
Central Deposit Insurance Corporation 30Years inRetrospect
