Page 25 - CDIC Company Profile Ebook

Upon founding in 1985 Subsequent reforms

Scope of 1. Deposits at the Central Bank of 1. Amendments adopted in January 1999:
utilization of the R.O.C. (Taiwan) (1) Deposits at the Central Bank of the R.O.C. (Taiwan).
deposit insurance 2. Investments in government (2) Deposits in financial institutions approved by the
payout special bonds, bonds with principal and competent authority and which provide government
reserves interest guaranteed by the bonds as collateral.
government, and financial (3) Investments in government bonds and financial
debentures debentures.
2. Amendments adopted in January 2007:
(1) Deposits at the Central Bank of the R.O.C. (Taiwan).
(2) Investments in government bonds.
(3) Financial tools approved by the CDIC Board of Directors.

Methods of 1. Cash payouts 1. Amendments adopted in January 1999:
fulfilling 2. Deposit transfers In addition to the methods listed to the left, provision
insurance 3. Temporarily continued operation of financial assistance to encourage acquisitions or
responsibilities in the name of the CDIC assumptions by other insured institutions was added.
2. Amendments adopted in January 2007:
(1) Deletion of temporarily continued operation in the name
of the CDIC.
(2) In addition to the insured institutions ordered to suspend
and wind up business, such financial assistance can
also be provided to the insured institutions under
conservatorship or taken over by the competent authority
according to related law.

Advance payment None Addition in January 1999:
for deposit in Advance payment is allowed to resolve the needs of
excess of creditors' liquidity at failed institutions, under the principle
coverage limit that no additional costs are incurred.
and non-deposit
liabilities

Exemption from None Addition in January 1999.
open tender, price
comparison,
price negotiation,
and the provisions
of Articles 25~27
of the Budget Act
when disposing
of troubled insured
institutions

Recipient and Limited to provide loans or purchase 1. Amendments adopted in January 1999:
method of assets to enable troubled financial (1) Insured institutions under guidance, superintendence,
financial institutions to resume operation, or conservatorship, may be assisted by provision of
assistance when such resumption is deemed loans or deposits.
necessary. (2) Other insured institutions that acquire or assume insured
institutions that are under guidance, superintendence,
or conservatorship, or that have failed, may be assisted by
provision of loans, deposits, funds and debt guarantees.
2. Amendments adopted in January 2007:

Evolution of Taiwan's Deposit Insurance System >>>> 25