(5) Establishment of E-DataFilesby Insured Institutions
In accordancewithArticle 23 of
theDeposit InsuranceAct
, theCDIC formulated the “Operating
Standards for the Format andContent of Deposit Insurance Electronic Data Files Established by
Insured Institutions,” whichwere implemented onApril 1, 2008. Insured institutions are required
to establish electronic data (e-data) files according to theseoperating standards. The e-data files
should cover the operations of insured institutions within the territory of the Republic of China,
includingoverseasbankingunits.
(6) Statutory InspectionMechanism forDeposit Insurance
A. Amending
theDeposit InsuranceAct
toGrant Statutory InspectionPowers
In 2004, the FSC was established and placed in charge of overall financial inspection and
supervision. In2007, the LegislativeYuanpassedArticle24of
theDeposit InsuranceAct
, granting
the CDIC statutory inspection powers tomeet needs related to reviewing premium assessment
bases, controlling insurance risk, and fulfilling insurance responsibilities.Theprovisionempowers
the CDIC to inspect the accuracy of deposit assessment base and content of the e-data files;
data related to risk indicators for the Risk-based Premium Rating System; any event causing the
termination of the deposit insurance agreement; the assets and liabilities of insured institutions
prior to the fulfillment of insurance responsibilities; and civil recoveries related to illegal acts
anddereliction of duty by personnel.Moreover, onMarch 31, 2008, theCDICwas authorized to
establish a Special InspectionDepartment specifically in chargeof carryingout such inspections.
After the deposit insurance system shifted frommandatory participation to an application and
approval method, the department has also performed on-site verifications of underwriting at
newly established financial institutions applying to join the deposit insurance system to effective
control insurance risk.
B. Inspections
I. Inspecting theAccuracyof theDepositAssessment Base
To ensure the accuracy of the basis of the deposit insurance premium reported for each period
of the year by insured institutions, theCDICperforms awrittenexaminationof thedata submitted
by insured institution. If further confirmation of the accuracy of the information is deemed
necessary after the review, the CDICmay send staff to perform an on-site inspection at the
insured institution.
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ReviewandOutlook
