Page 23 - CDIC Company Profile Ebook

Upon founding in 1985 Subsequent reforms

Premium rates 5. Amendments adopted in July 2007:
Risk-based premium rates for covered deposits within
the coverage limit and a flat rate for eligible deposits in
excess of the coverage limit, as follows:
Financial Risk-based Flat Premium
Institutions Premium Rates Rate
Domestic banks, Five-tier rates: 0.0025%
Taiwan branches 0.03%, 0.04%, From January 1,
of foreign banks, 0.05%, 0.06%, 2010 it was
trust and investment and 0.07% adjusted to
companies, and 0.005%
credit cooperatives
Credit departments Five-tier rates: 0.0025%
of farmers' and 0.02%, 0.03%,
fishermen's 0.04%, 0.05%,
associations and 0.06%
6. Amendments adopted in November 2010:
It is effective from January 1, 2011 as follows:

Financial Risk-based Flat Premium
Institutions Premium Rates Rate
Domestic banks, Five-tier rates: 0.005%
Taiwan branches of 0.05%, 0.06%,
foreign and main- 0.08%, 0.11%,
land Chinese banks and 0.15%
Credit cooperatives Five-tier rates: 0.005%
0.04%, 0.05%,
0.07%, 0.1%,
and 0.14%
Credit departments Five-tier rates: 0.0025%
of farmers' and 0.02%, 0.03%,
fishermen's 0.04%, 0.05%,
associations and 0.06%
The term "Taiwan Branches of Foreign Banks" was also
revised in October 2013 into "Taiwan Branches of Foreign
and Mainland Chinese Banks" by applying the same
risk-based premium rate.

Coverage limit NT$700,000 1. Increased to NT$1 million on August 15, 1987.
2. In July 2001, the government passed the Act for the
Establishment and Administration of the Financial
Restructuring Fund and established the Financial
Restructuring Fund to dispose of troubled financial
institutions. During the period of the Fund's operation,
there was no coverage limit on the deposits in troubled
institutions under disposal or listed for disposal.
3. Increased to NT$1.5 million on July 1, 2007.
4. To stabilize the financial system and strengthen the
confidence of depositors, the government announced in
October 2008 that, until December 31, 2009, the deposits
in insured institutions would be provided with temporary
full coverage and would not be subject to the coverage
limit. In October 2009, the government announced that
the period of temporary full coverage would be extended
one more year until December 31, 2010.
5. On August 12, 2010, the FSC, the MOF and the Central
Bank of the R.O.C. (Taiwan) jointly announced that the
coverage limit would be increased to NT$3 million from
January 1, 2011.

Evolution of Taiwan's Deposit Insurance System >>>> 23