Data Source:Laws and Regulations Retrieving System of the Banking Bureau

1.
These Regulations are promulgated in accordance with Paragraph 2, Article 36 of the Banking Act.

2.
If the foreign financial institution hold fifty percent (50%) or more of the outstanding voting shares or capital stock of a local bank directly or indirectly, such local bank should meet the standard for the ratio of assets and liabilities to net worth as following:
(1) The amount of its eligible assets based on its holdings of the following asset items should be calculated according to assigned weights. Total amount of holding of eligible assets shall not be less than 40 percent of the total amount of NTD deposits accepted by the local bank:
(i) NTD cash on hand is calculated at 85% of the amount.
(ii) Certificates of Deposits Issued by the Central Bank of the Republic of China as well as NTD deposits deposited and re-deposited in the Central Bank of the Republic of China combined are calculated at 85% of the amount.
(iii) NTD bonds and bills issued by the ROC government combined are calculated at 85% of the value.
(iv) NTD bonds, bills, beneficial securities and asset-backed securities issued by state-run enterprises and private enterprises in the ROC are calculated at 75% of value for investment grade securities and 70% of value for non-investment grade securities.
(v) NTD stocks issued by the ROC enterprises are calculated at 55% of the value.
(vi) Outstanding NTD mortgage loans extended to ROC nationals (excluding non-accrual loans) are calculated at 85%.
(vii) Outstanding loans extended to state-run and private enterprises, government agencies and individuals in the ROC (excluding outstanding NTD mortgage loans in the previous subparagraph) are calculated at 70% for secured loans and 60% for unsecured loans.
(viii) Total investment in real estate for own use in the ROC is calculated at 60%.
(2) Combined with the Taiwan branch of foreign financial institution, for the legal entity or its affiliated entity hold fifty percent (50%) or more of the outstanding voting shares or capital stock of a local bank directly or indirectly, the total net asset amount (amount of asset less the amount of liability for each transaction) should not exceed fifty percent (50%) of the Bank's net worth as of the end of the preceding financial year. The increase of cash capital of such bank is allowed to included in the above net worth, and the date acquires certificate of verification of capital should be the reference date of calculation.

3.
The term “Investment-grade” mentioned in preceding Point refers to those that meet the criteria set forth in Article 4 of the Directions Governing Limitations on Types and Amounts of the Securities in which a Commercial Bank May Invest.

4.
The term “secured” mentioned in Point 2 refers to collateral provided in Article 12 of the Banking Act.

5.
Local bank that are not in line with the amended Point 2, Subparagraph 2 promulgated on July 13, 2011 must make adjustment to become complying in one year after the aforementioned amended articles come into effect.
Before the expiry of the adjustment period mentioned in the preceding Paragraph,　local bank may apply for an extension with reasons and adjustment plan to competent authority in case of a legitimate reason. Such an extension shall not exceed one year and shall be limited to one time only.