Page 19 - CDIC Company Profile Ebook

and supervisory authorities from around the world in order to strengthen
Taiwan's deposit insurance system. Furthermore, by familiarizing other
deposit insurers with Taiwan's deposit insurance system and experiences,
it promotes Taiwan's international image and creates a higher international
profile for our country.

7. Cooperation with the competent authority to implement
major financial industry policies
(1) Utilization and management of the Financial Industry Special
Reserve Fund on behalf of the FSC

The FSC has entrusted the utilization and management of the Financial
Industry Special Reserve Fund to the CDIC in accordance with the provisions
of the Regulations on the Utilization and Management of the Financial
Industry Special Reserve Fund. When carrying out funds management,
the CDIC diversifies the Reserve Fund's asset allocations to give balanced
consideration to the needs for safety, liquidity, and returns.
(2) Strengthening of the monitoring of specific-risk businesses in
coordination with the supervisory policies of the competent
authority

The FSC entrusted the CDIC to analyze or monitor domestic banks'
risk exposures overseas (including in New Southbound countries) and in
mainland China, as well as risks arising from banks' handling of over-the-
counter financial derivatives and domestic structured financial products.
Moreover, in order to assist with financial supervision and strengthen risk
controls, the CDIC presents periodic and occasional reports to the FSC
and arranges the handling and follow-up tracking of major credit risk cases
reported by insured institutions. In addition, in support of the FSC's
supervisory policies, the CDIC is promoting a new method for filing of call
reports by internet-only banks, so as to strengthen risk monitoring of the
liquidity of internet-only banks.

(3) Support of the competent authority's supervision of systemically
important banks

To prevent large domestic banks or financial holding companies from
experiencing future business crises that would expose the entire financial industry
to systemic risks, the FSC has adopted standards for identifying
Taiwan's systemically important banks, and requested these
banks to submit their "Response Measures for Business Crises"
to the FSC and the CDIC every year. In the future, the CDIC
will continue to support the competent authority’s supervision of
the inspections on the above-mentioned Response Measures.

(4) Examination of financial information service institutions entrusted
by credit departments of farmers' and fishermen's associations on
behalf of the central competent authority of the agricultural finance.

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