The Financial Supervisory Commission, Executive Yuan (FSC) is inaugurated to be the sole statutory financial supervisor and is conferred upon the authority of supervision of all financial institutions including banks, securities and insurance companies on 1st July 2004.
From then on, the Bank stopped carrying out regular full-scope on-site examinations of individual financial institutions. To facilitate the implementation of the central bank’s policies, the Bank retains the authority to carry out target examinations on issues related to monetary, credit and foreign exchange policies and payment system. In addition to on-site target examinations, the Bank implements off-site monitoring to identify the weakness of individual financial institution and to grasp the whole picture of financial system in order to response appropriately in a timely manner.
Pursuant to the Financial Supervisory Commission Act, there is a coordination mechanism among financial supervisory authorities in place. The "Financial Supervision Coordination Group" which is composed of senior officers of the FSC, the Bank and other related financial authorities meets every month and when necessary to coordinate and cooperate on issues of financial supervision, management and examination.