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Regular Disclosure Items Required for Important Business and Financial Information for Cash Cards
(1 June 2004)
Letter Ref. Tai-Tsai-Rong-(IV)-0930009656
Subject:
To raise the transparency of the asset quality of cash card issuing institutions, facilitate the functions of business self-regulation and market discipline, required disclosure items, disclosure methods, and definitions, for important business and financial information for cash cards are hereby prescribed, as specified in the "Statement." Please be advised and forward the information herein.
Statement:
1. Pursuant to Article 45, paragraph 1 of the Banking act and in response to the letter dated 11 March 2004 (ref. Cyuan-Shou-0609) from the Bankers Association of the Republic of China.
2. The required disclosure items, disclosure methods, and definitions for important business and financial information for cash cards are as follows:
(1) Disclosure method: Important business and financial information for cash card issuing institutions is disclosed monthly in the "Financial Information Disclosures" pages of the Banking Bureau's web site (http://www.banking.gov.tw). The source of the data is the cash card business data reported by the 15th of each month for the previous month by all card issuing institutions on the Internet reporting system of the Banking Bureau. All card issuing institutions are responsible for the accuracy and timeliness of reported data.
(2) The aforesaid disclosure items and definitions are:
(i) Number of cards in force: the number of cards "with line drawn at the end of the base date month."
(ii) Number of cards with line undrawn: the number of cards "with line undrawn at the end of the base date month."
(iii) Total line extended under lending contracts: the sum total of lines approved to card holders per cash card contracts at the end of the base date month, in units of NT$1,000.
(iv) Total available line: the sum total of lines available to cardholders at the end of the base date month, in units of NT$1,000.
(v) Outstanding loan balance (including receivables under collection): the sum total of lines drawn by cardholders at the end of the base date month, in units of NT$1,000.
(vi) Delinquency ratio: ratio of non-performing loans to loans outstanding (including accounts under collection) at the end of the base date month (loans outstanding are determined and reported as per the instructions in the MOF letter dated 16 February 1994, ref. Tai-Tsai-Rong-832292834).
(vii) Coverage balance: the bad debt reserve put aside for cash card business at the end of the base date month, in units of NT$1,000.
(viii) Monthly bad debt write-off amount: the amount of bad debt write-offs in the base date month, in units of NT$1,000.
(ix) Annual cumulative bad debt write-off amount: the amount of accumulated bad debt write-offs for the year to the end of the base date month, in units of NT$1,000.
(3) "The end of the base date month" means the end of month prior to the date of reporting. The aforesaid disclosure provisions will apply beginning from the data for the end of May 2004 reported by the card issuing institutions in June 2004.
3. According to Article 7 of the Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non-performing/Non-accrual Loans and Bad Debt as amended and issued in MOF order ref. Tai-Tsai-Rong-(I)-0928011826 dated 6 January 2004 for enforcement from 1 July 2005, "'non-performing loans' means loans on which principal and/or interest is in arrears by more than three months past the due date, or though not yet more than three months past due, for which recourse action has been taken against the primary and secondary debtor or a disposition has been made against the collateral." From that date, all card issuing institutions shall report in accordance with the new definition. Please make the necessary adjustments as early as possible.
4. With respect to the Bankers Association's resolution to compile information on the interest rates and fees imposed by cash card issuing institutions and publish them on its website, the Association shall ask all card issuing institutions to enter timely and accurate information, and shall compile it and publish it on its website beginning from 1 July of this year, for consumers' reference.
5. Additionally, to facilitate the obtaining by the general public of timely information on the finances and business of individual financial institutions, all card issuing institutions shall regularly, by the 15th of each month, disclose on their websites the aforesaid required disclosure items of important business and financial information for cash cards and information on the interest rates and fees they impose, for the preceding month end, beginning from July 2004 (i.e. for the data for June 2004). |