II. Inspecting Data Related to Risk Indicators for the Risk-based Premium Rating
System
Since 2012, the CDIC has inspected data on risk indicators for the Risk-based
Premium Rating System. Detailed on-site inspections are performed to ensure the
accuracy of data reported by insured institutions and to verify the accuracy of the
calculationof the insured institution’s applicable riskbasedpremium.
TheCDIC formulated the “KeyPoints for Inspectionsof Risk IndicatorDataReported
by Insured Institutions for the Deposit Insurance Risk-based Premium Rating
System.” The key points stipulate that themain purpose of such inspections is to
audit theCAR, assess the likelihoodof asset impairment, andgrade classifiedassets
and various management abilities. They also specify the purpose, timing, methods
and scopeof inspections.
III. Inspecting theContent of E-DataFiles
To enable the correct and timely calculation of payout amounts in the future
fulfillment of insurance responsibilities, the CDIC formulated the “Operating
Standards for the Format and Content of Deposit Insurance Electronic Data Files
Establishedby Insured Institutions” in September 2007, according to stipulations in
Article23of the
Deposit InsuranceAct
. It also asked insured institutions toestablish
e-data files according to the operating standards. In addition, since 2009, theCDIC
has conducted on-site inspections of the accuracy of the format and contents of
e-data filesestablishedby insured institutions.
TheCDICalsodesignedandplannedan “Insured InstitutionE-DataFilesVerification
IT System” to support inspection of the completeness and accuracy of the large
amount of e-dataprovidedby insured institutionswith the least possiblemanpower
and in the shortest possible time. The system assists the implementation of
inspection operations by making up for shortcomings in comprehensivemanual
checks, thereby improving inspectionefficiencyand inspectionquality.
IV. On-siteVerificationof Deposit InsuranceApplications
Taiwan’sdeposit insurance system shifted fromamandatoryparticipationmethod to
anapplicationandapprovalmethod in2007. Inorder toenable financial institutions
40
Central Deposit Insurance Corporation 30Years inRetrospect
