Page 11 - CDIC Company Profile Ebook

(3) Eligible and ineligible deposits

Deposit insurance covers deposits made within the territory of Taiwan,
regardless whether denominated in domestic currency or foreign currency, but
it does not cover deposits accepted by a bank's offshore banking unit.
Eligible deposits and ineligible deposits are as follows:

Eligible Deposits Ineligible Deposits

● Checking deposits ● Negotiable certificates of deposits
● Demand deposits ● Deposits from government agencies
● Time deposits ● Deposits from the Central Bank
● Deposits required by law to be of the R.O.C. (Taiwan)
deposited in certain financial ● Interbank deposits from financial
institutions institutions accepting deposits
● Other deposits which the competent ● Other deposits that the competent
authority has approved as eligible authority has approved as ineligible
deposits deposits

(4) Coverage limit

The deposit insurance coverage limit including principal and interest
was increased to NT$3 million per depositor for each insured institution,
effective from 1 January 2011.

(5) Deposit insurance payout special reserves

The CDIC maintains two separate deposit insurance payout special
reserves, one for general financial institutions (including banks, credit
cooperatives, and postal institutions handling postal savings and remittances
businesses) and the other for agricultural financial institutions (including credit
departments of farmers' associations, credit departments of fishermen's
associations, and the Agricultural Bank of Taiwan). The accounts for these
two reserves are kept separately. For each of the payout special reserves,
the target ratio of the deposit insurance payout special reserves to covered
deposits is 2%.

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