YEAROF
ESTABLISHMENT
(SEPT. 1985)
CHANGES (SEPT. 1985~PRESENT)
Eliminationof
LimitsonPayout
Cost
None
Added inJanuary2007:
When there is concern of a serious threat to credit order
and financial stability, after theCDICobtains the consent of
the competent authority in consultationwith theMinistry of
Finance and the Central Bank and with the final approval
of the Executive Yuan, the limit on payout cost may be
eliminated.
Set-off
None
Added inJanuary2007:
Before handling any payout, the CDIC may set-off the
claims of a depositor against his/her liabilities in the failed
insured institution.
Terminationof
Membership
If an insured institution
violated the lawsor
regulationsor thedeposit
insuranceagreement
or engaged inunsound
business transactions,
and failed to rectifysuch
violationswithin the
time limit prescribedby
theCDIC, theCDICshall
terminate itsstatusasan
insured institutionand
report suchaction to the
competent authority for
disposal.
Revised inJanuary2007 to:
The scope of reasons for termination of insured status is
revised toalso include the following:
1.An insured institution isorderedand requiredby the competent
authorityor thecentral competent authority for agricultural finance
toberecapitalizedor improve its financialorbusinesscondition,but
fails tomeet such requirementswithin theprescribed time-limit; or
the time-limit isnotduebut thecompetent authoritiesor theCDIC
deemthesaid insured institution’sconditionnon-improvable.
2.There is amajor fraudor other illegal activities occurring at an
insured institution with the potential to increase the deposit
insurancepayouts.
In theaforementioned situations, theCDIC shall, after notifying the
competentauthorityor thecentralcompetentauthority foragricultural
finance, terminate thedeposit insurancemembershipof the insured
institutionandmakeapublicannouncement.
Disclosure
Requirement
of Eligibilityof
Deposit Insurance
inFinancial
Products
None
Added inJanuary2007
73
Appendix
