Page 12 - CDIC Company Profile Ebook

Principal Operations

Deposit insurance Financial stability

(6) Deposit insurance premiums

A. General premiums
General premiums are paid by insured institutions biannually, in January
and July respectively. The premium assessment base is calculated based
on the total deposits after subtracting non-eligible deposits, with 31
December and 30 June treated as the standard dates of record for the
purpose of calculating the two premium payments.
B. Special premiums

If the failure of an insured institution is likely to seriously threaten
the maintenance of credit order and financial stability, where implementation
by the CDIC of the aforementioned matters would cause a shortfall in
the "General Deposit Insurance Payout Special Reserves" and / or the
"Agricultural Deposit Insurance Payout Special Reserves," then the
CDIC may collect a special premium from insured general financial
institutions or insured agricultural financial institutions, as appropriate.

(7) Deposit insurance premium rates

Paragraph 3 of Article 16 of the Deposit Insurance Act stipulates that
deposit insurance premium rates shall be set by the CDIC and submitted
to the FSC for its approval.

From January 1, 2011, the premium rates are as follows:
● The five-tiered risk-based premium rates for banks and Taiwan branches
of foreign and mainland Chinese banks are 0.05%, 0.06%, 0.08%,
0.11%, and 0.15% of covered deposits, respectively, with a flat premium
rate of 0.005% for eligible deposits in excess of the coverage limit.

● The five-tiered risk-based premium rates for credit cooperatives are 0.04%,
0.05%, 0.07%, 0.10%, and 0.14% of covered deposits, respectively, with
a flat premium rate of 0.005% for eligible deposits in excess of the
coverage limit.
● The five-tiered risk-based premium rates for the credit departments of
farmers' and fishermen's associations are 0.02%, 0.03%, 0.04%,
0.05%, and 0.06% of covered deposits, respectively, with a flat premium
rate of 0.0025% for eligible deposits in excess of the coverage limit.

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