:::Main Area

	Deposit Money
	This refers to the checking deposits, passbook deposits, and passbook savings deposits of enterprises and individuals in monetary institutions.
	Foreign Exchange Reserves
	Internationally acceptable means of payments held by monetary authorities to finance balance of payments imbalances.
	Liquid Liabilities
	This includes currency held by all sectors/departments except for financial institutions, all deposits of enterprises and individuals received by the financial institutions, trust funds, life insurance reserves drawn by insurance companies, and bank debentures held by enterprises and individuals, Treasury bills and savings bonds issued by the Bank. From the data of Jan. 1994 on, it also includes repurchase agreements and non-resident NT deposits.
	Liquid Asset Requirements of Deposit Money Banks
	To urge banks to maintain an appropriate degree of liquidity in respect of their assets, deposit money banks are required to hold a certain proportion of liquid assets. The proportion held in the form of liquid asset requirements has been 7 percent since July 1978.  According to the articles, those assets that may be deemed to be liquid assets in order to serve as liquid reserves include excess reserves, net due from banks, Treasury bills, net holdings of negotiable certificates of deposit, bankers' acceptances, commercial paper as well as bank debentures, government bonds, corporate bonds, and other liquid assets approved by the Bank.
	Loans and Investments
	This refers to the loans and portfolio investments of all monetary institutions and the postal savings system to enterprises, individuals and government agencies.
	Monetary Aggregate M1A
	= Currency Held by the Public + Checking Accounts and Passbook Deposits of Enterprises and Individuals (includes non-profit organizations) in Monetary Institutions.
	Monetary Aggregate M1B
	= Currency Held by the Public + Deposit Money, or M1B = M1A + Passbook Savings Deposits of Individuals (includes non-profit organizations) in Monetary Institutions.
	Monetary Aggregate M2 = M1B + Quasi-Money
	Qualified Foreign Institutional Investors(QFIIs)
	This refers to foreign banks, insurance companies, fund management institutions, securities firms etc., investing in Taiwan's financial markets, who are managing or holding securities asset of more than million and who are approved by the Bank and the Securities and Futures Commission.
	Quasi-Money
	This refers to the time deposits (including general time deposits and negotiable certificates of deposit (NCDs)), time savings deposits, foreign currency deposits of enterprises and individuals in monetary institutions, and postal savings deposits. From the data of Jan. 1994 onwards, it also includes repurchase agreements and non-residents NT deposits.
	Reserve Money
	The reserve money comprises all reserves held by deposit money banks & the postal savings system and currency held by the public, both of which are the monetary liability of the Bank. It is also referred to as "high-powered money" or "base money". Changes in reserve money affect directly the amount of loanable funds of deposit money banks. Through the money-creating process, money supply and liquidity consequently expand or contract by a multiple which is usually measured by the ratio of money supply to reserve money.
	Reserve Requirements and Free Reserves
	Financial institutions are required to hold appropriate reserves. The category of liabilities includes checking deposits (including accepted or certified cheques and traveler's cheques), passbook deposits, savings deposits, time deposits, foreign currency deposits, overdrafts with banks, due to banks, bank debentures, inter-branch accounts, accounts payable under forward exchange, repurchase agreements, and other liabilities regulated by the Central Bank. Those assets which count as reserves include cash in vaults, reserve deposits or the deposits placed in a special account of the inter-bank clearing fund with the Banking Department of the Bank or entrusted institutions, and the Book-Entry Central Government Bond Fund Account with the Treasury Department of the Bank. Total assets mentioned above held by banks are actual reserves. Free reserves refer to the actual reserves less required reserves and borrowings from the Bank.
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