Chapter Five -- Internal Systems |
| Article 20 |
（Accounting system of credit cooperatives）The accounting system of a credit cooperative shall be established in accordance with the uniform accounting system prescribed by the Central Competent Authority. |
| Article 21 |
（Implementation of internal control and audit system）A credit cooperative shall establish internal control and auditing systems, the rules of its purpose, principal, policy, operation process, the qualification of internal auditor, the authorized scope of internal auditing to CPA, and other compliance matters made by the Central Competent Authority.
A credit cooperative shall set up the credit review committees; the organizational rules for the credit review committees shall be prescribed by the Central Competent Authority.
A credit cooperative shall establish internal control systems and procedures for assessing the quality of its assets, setting aside loss reserves, clearing of non-performing loans and non-accrual loans, and writing off bad debt; the applicable regulations shall be prescribed by the Central Competent Authority.
A credit cooperative operation that is entrusted to other people, shall establish internal control systems and procedures for the authorized scope protection of customer rights, risk management and principles of internal control. Furthermore, applicable regulations shall be prescribed by the Central Competent Authority. A credit cooperative that fails to set aside sufficient allowances for bad debt in accordance with the preceding paragraph may not distribute compensations to its directors and supervisors, and the Competent Authority may restrict its distribution of earnings. |
| Article 21- 1 |
（Strengthening with respect to security protection）A credit cooperative shall strengthen with respect to security protections for its business premises, vaults, safe deposit boxes (rooms), automatic teller machines, and cash transport operations etc.; the applicable regulations shall be prescribed by the Central Competent Authority. |
| Article 22 |
（personnel system ）A credit cooperative shall establish a personnel system to govern: appointment and dismissal, promotion and demotion, education and training, performance evaluation, wages and salaries, welfare and benefits, rewards and penalties, job rotation, retirement and pension, etc. It shall also adopt internal rules for personnel management.
The rules for personnel management referred to in the preceding paragraph shall be adopted by the general meeting of members, and shall be submitted to the county (city) government for transmission to the Central Competent Authority or submitted to the municipal Competent Authority for review and record before implementation. |