Page 27 - CDIC Company Profile Ebook
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Upon founding in 1985 Subsequent reforms
Depositor None Addition in May 2006:
Preference When an insured institution is disposed of by the CDIC with
the stipulation of the Deposit Insurance Act by the competent
authority or the central competent authority of the agricultural
finance for resolution or liquidation upon clearing the debt,
its deposit liabilities shall take precedence over non-deposit
liabilities.
Establishment None Addition in January 2007:
of two separate 1. The reserves were divided into two separate deposit
deposit insurance insurance payout accounts for general financial institutions
payout special and agricultural financial institutions.
reserves 2. Both reserve funds have a target ratio of 2% of covered
deposits.
Inspection of If the CDIC deemed it necessary, 1. Amendments adopted in January 2007:
insured and after obtaining the prior approval The CDIC may in accordance with Article 24 of the
institutions of the competent authority in Deposit Insurance Act conduct inspections on insured
consultation with the Central Bank institutions on the following items:
of the R.O.C. (Taiwan), the CDIC (1) Accuracy of deposit assessment base and content of
may examine the business records the electronic data files for the calculation of deposit
and accounts of an insured insurance premiums and the amount of the payout.
institution. (2) Any event causing the termination of the deposit insurance
agreement.
(3) Assets and liabilities of insured institutions prior to the
fulfillment of insurance responsibilities.
(4) Property information and information needed to pursue
civil liabilities for illegal acts or omissions by employees
of failed insured institutions and for those of problem
insured institutions that receive financial assistance.
2. Addition in January 2012:
Pursuant to Subparagraph 1, Paragraph 1, Article 24 of
the Deposit Insurance Act and Item 4, Point 3 of the
Implementation Scheme of the Deposit Insurance Premium
System approved by the FSC, in order to confirm the
accuracy of the data and files related to the risk indicators
reported by insured institutions, the CDIC shall conduct
review inspections and evaluation inspections.
Elimination of None Addition in January 2007:
limits on payout When there is a concern of a serious threat to credit order
cost and financial stability, after the CDIC obtains 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, the limit on payout cost
may be eliminated.
Set-off None Addition in January 2007:
Before handling any payout, the CDIC may offset the debts
of a depositor against his/her deposits in the failed in-
sured institution.
Termination of If an insured institution violated the Amendments adopted in January 2007:
deposit laws or regulations or the deposit The scope of reasons for termination of insured status is
insurance insurance agreement or engaged amended to also include the following:
agreement in unsound business transactions, 1. An insured institution is ordered and required by the
and failed to rectify such violations competent authority or the central competent authority
within the time limit prescribed by of the agricultural finance to be recapitalized or improve
the CDIC, the CDIC shall terminate its financial or business condition, but fails to meet such
its status as an insured institution requirements within the prescribed time limit; or the time
and report such action to the com- limit is not due but the competent authorities or the CDIC
petent authority for disposal. deem the said insured institution's condition non-improvable.
Evolution of Taiwan's Deposit Insurance System >>>> 27