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Letters of Financial Supervisory Commission, Ministry of Finance, and Central Bank of ROC
Address: 18F, No.7, Sec. 2, Xianmin Blvd., Banqiao City, Taipei County
Telephone: (02)89689999
Fax: (02)89691366
TO: (see below)
Issue date: December 24, 2008
Ref. No.: Gin-Guan-Yin-(3)-Zi-No. 0973006750
Tai-Cai-Ku-Zi-No. 09703518080
Tai-Yang-Jian-Zi-No. 0970061520
Priority:
Class and confidentiality period:
Attachment: See Subject.
Subject: Please see Explanations 2 and 3 below with regard to the revision of the section on "Charges of Special Premiums" in the "Support Measures for the Blanket Deposit Guarantee Program."
Explanations:
1. The revision is made based on the conclusions drawn in the meeting held on December 9, 2008 for discussing the revision of special premiums in the Support Measures for the Blanket Deposit Guarantee Program.
2. The charges of special premiums for interbank loans are revised as follows:
(1) The charge method is revised from "charge by the month based on the daily outstanding amount borrowed by the insured institution" to "charge by the month based on the monthly average of outstanding amounts borrowed by the insured institution."
(2) The basic premium rate of 0.01%, 0.03%, 0.05%, 0.07% and 0.09% are revised to 0.00%, 0.01%, 0.03%, 0.05%, and 0.07%, and the excess premium rate is reduced by half (from 0.25%, 0.375%, 0.5%, 0.625%, and 0.75% to 0.125%, 0.1875%, 0.25%, 0.3125%, and 0.375%).
(3) The base line is revised from "120% of average outstanding amount borrowed between April 1, 2008 and September 30, 2008" to "120% of the highest monthly average of outstanding amount borrowed during the same period."
(4) When an insured institution meets simultaneously all conditions below, the basic premium and excess premium are waived for the month:
a. Its average outstanding amount of loans extended to private enterprises in the month grows by 0.5% or more as compared to the average outstanding amount in the previous month;
b. Its latest reported capital adequacy ratio is 8% or higher; and
c. Its non-performing loan（NPL）ratio in the month is 2.5% or lower, or its NPL ratio in the month is 3% or lower and has dropped as compared to that in the previous month.
3. The revision of the special premiums for interbank loans will be implemented starting December 1, 2008.
4. A reference table of the revision is attached.
TO: All domestic banks, foreign bank branches in Taiwan and Chunghwa Post Co., Ltd.
cc: Fourth Division of Executive Yuan, Legal Affairs Committee, Executive Yuan, Ministry of Finance, Council of Agriculture, Ministry of Transportation and Communications, Central Bank of the Republic of China (Taiwan), Central Deposit Insurance Corporation, The Bankers Association of The Republic of China, The National Federation of Credit Co-operative, Insurance Bureau, Financial Examination Bureau, Securities and Futures Bureau, Department of Planning, Department of Legal Affairs, Congressional Liaison Unit, Information Office, Chairperson's Office, the Office of Administrative Vice Chairperson Wu, the Office of Political Vice Chairperson Lee, Commissioner Lin Kuo-Chuan, Commissioner Chang Shih-Chieh, Commissioner Yang Ya-Hui, Commissioner Yeh Yin-Hua, Commissioner Tsai Tsung-Jung, Commissioner Liu Chi-Chun, Secretary General's Office of Financial Supervisory Commission, and Banking Bureau (attachment enclosed).
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