assumption of theGoodBank Tranche Bwas completed onDecember 27, 2008. The resolution
did not require any funding from the Financial Restructuring Fund or the deposit insurance
payout special reserve, setting a newprecedent inTaiwan for the resolutionof unsound financial
institutionswithout theuseof public funds.
TheCDIC subsequently sold theAsiaPlazabypublic tender onOctober 29, 2012.TheShinKong
Life Insurance submitted thewinning bid of NT$3.909 billion.With the final disposal of theAsia
Trust’s assets and liabilities,CDIC completed its conservatorshipduties. It reported to theFSCon
January 31, 2013, andobtained the latter’s approval to terminate conservatorship, effective from
midnight on September 6, 2013. This alsomarked the start of the dissolution and liquidation
process. On the day that the CDIC ended conservatorship, it turned over affairs related to the
liquidationof theAsiaTrust to the liquidator theCosmosBank.A specialmeetingof theAsiaTrust
shareholders resolved to pay the Financial Restructuring FundNT$217million for administrative
resourcesprovidedby thegovernment to theAsiaTrust.TheCDICnotified theFSCof the closure
of theAsiaTrust conservatorship, concluding this case.
X. ChinfonCommercial Bank (ChinfonBank)
In September 2008, the CDIC was instructed by the competent authority to handle
conservatorship of the Chinfon Bank. The bank was the last institution included for resolution
under the Financial Restructuring Fund. The bank was split into a Bad Bank and a Good Bank
for separate tender sale. The Bad Bank was smoothly auctioned off in four tranches of creditor
rights. However, the tender for the Good Bank failed due to lack of participation. Following
a study and analysis, the CDIC adopted an auction strategy splitting the Good Bank into four
lots: domestic branch lots A (18 branches) and B (19 branches), the Vietnam branches, and
credit card operations. The strategy was approved by the FundManagement Committee at its
80thmeeting and by the FSC in August 2009. The tender sale was announced on September
14, 2009, and the tender results were disclosed onOctober 27. All four lots were successfully
auctioned. The Lot Adomesticbrancheswas acquiredby theYuantaCommercial Bank; the Lot B
domestic branches was acquired by the Far Eastern International Bank; the credit card business
was acquired by the Taishin International Bank; and the Vietnam branches was acquired by the
Taipei Fubon Commercial Bank. The case created a newmodel for the split auction of unsound
financial institutions. The CDIC and the aforementioned four banks signed general assignment
andassumption contractsonOctober 30, 2009.Thegeneral assignment of theVietnambranches
and credit cardbusiness was completed onMarch 6, 2010, while the general assignment of the
domesticbranches in lotsAandBwas completedonApril 3, 2010.
Between July 2001, when the CDICwas first entrusted under the Financial Restructuring Fund
with the resolutionof unsound financial institutions, to the terminationof the fundonDecember
31, 2011, theCDICparticipated in the resolutionof 56unsound financial institutions.The subjects
51
ReviewandOutlook
