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Page 16 - CDIC Company Profile Ebook
P. 16

Principal Operations







                         Deposit insurance    Financial stability




                             4. Resolution of troubled insured institutions

                               (1) Acting as a conservator or receiver
                                     When the competent authority orders suspension of an insured institution's
                                  business, or appoints an agency to act as a conservator or to take over the
                                  authorities of the company's board of directors and supervisors, the CDIC
                                  shall act as a conservator or receiver if so instructed by the competent
                                  authority, and shall conduct conservatorship proceedings, promote a purchase
                                  and assumption deal, act as receiver, and fulfill insurance responsibilities
                                  in accordance with the provisions of the Banking Act, the Deposit Insurance
                                  Act, and other applicable financial laws and regulations.
                               (2) Fulfillment of insurance responsibilities

                                     The  CDIC  may  fulfill  its  insurance  responsibilities  in  various  ways,
                                  including the following:
                                  A. Make payouts by cash, remittance, deposit transfer, or an alternate payment
                                     method, in amounts based on the books and records of the failed insured
                                     institution, and on deposit balance certificates provided by depositors.
                                     This method shall be referred to hereinafter as "cash payouts."
                                  B. Consult with other insured institutions to make the same amount of
                                     deposits as the amount of payout for the depositors of the failed insured
                                     institution and make payment on behalf of the CDIC.
                                  C.  Provide  other  insured  institutions  or  financial  holding  companies  with
                                     funds, loans, deposits, and guarantees, or purchase the subordinated debts
                                     issued by the said insured institutions or financial holding companies,
                                     in order to facilitate the acquisition or assumption of all or part of businesses,
                                     assets, and liabilities of the insured institution that has been ordered to
                                     suspend business, placed under conservatorship, or taken over the
                                     authorities of its board of directors and supervisors.
                               (3) Handling of systemic crises

                                      During the process of resolution of a troubled insured institution, if there is
                                   a likelihood that the process might threaten financial stability and credit order,
                                   once the CDIC has obtained the consent of the competent authority in
                                   consultation with the MOF and the Central Bank of the R.O.C. (Taiwan), and
                                   with the final approval of the Executive Yuan:


              16     <<<<                                                  Central Deposit Insurance Corporation
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