| Terms |
Definitions |
| Swaps |
Swaps refer to the exchange of commodities (mainly financial products). BIS defines financial swaps as agreements to exchange cash flows for different commodities within a certain period of time. Trading swaps seek to reduce capital cost, to get rid of financial risk, and to enhance sources of funding.[6]
|
| Systemic Risk |
The systemic risk, also called market risk, refers to the risk caused by changes in market conditions. The risk comes from influences of economic or political factors such as the impact of monetary and fiscal policies on GNP, the phenomenon of inflation, and domestic political instability.[4] |
| Systemic Risk in Payment System |
The risk that the inability of one of the participants to meet its obligations, or a disruption in the system itself, could result in the inability of other system participants or of financial institutions in the financial system to meet their obligations as the obligations become due. Such a failure could cause widespread liquidity or credit problems and, as a result, could threaten the stability in the payment system and financial market.[1]
|
| Systemically Important Payment System, SIPS |
Refers to a payment system which has a great impact on the financial system. These systems are a major channel by which shocks can be transmitted across domestic and international financial systems and markets. It is likely that a system is of systemic importance if at least one of the following is true: (1) it is the only payment system in a country, or the principal system in terms of the aggregate value of payments; (2) it handles mainly payments of high individual values; (3) it is used for the settlement of financial market transactions or for the settlement of other payment systems. In the case of Taiwan, the payment systems which meet the above conditions include: the Central Bank Interbank Fund Transfers and Settlements System, the Interbank Remittance System of the Financial Information Service Co., Ltd. and the Check Clearing System of the Taiwan Clearing House.[1]
|
| TAIBOR |
The Taipei Inter-bank Offered Rate (TAIBOR) is an average call-loan offered rate. The General Designated Dealers provide their call-loan offered rates to a designated agency for 8 different tenors, namely 1-week, 2-week, 1-month, 2-month, 3-month, 6-month, 9-month and 1-year. The designated agency is commissioned by the Taipei Interbank Money Center to calculate the average quoted offered rates to be published at 11:30 AM daily.[1]
|
| The South East Asian Central Banks (SEACEN) Research and Training Center |
The South East Asian Central Banks (SEACEN) Research and Training Center was established in 1982 with eight member central banks and has grown to 15 members. The SEACEN reviews and analyses financial, monetary, banking and economic developments in its member countries and in the region as a whole. It initiates and facilitates cooperation in research and training on policies and operational aspects of central banking. Since 2001, training has become the principal activity of SEACEN, focusing on areas that have practical applications in central banking. Research plays supporting functions. Research papers are presented and used as course materials for training events.[6]
|
| Tier 1 Capital |
Tier 1 capital includes common stockholder's equity, non-cumulative perpetual preferred stock, capital reserves (except the value appreciation of fixed assets), retained earnings (deducting the insufficiency of operation reserves and loan loss provisions), minority interest and cumulative effect of equity adjustments less goodwill and treasury stock.[5] |
| Tier 2 Capital |
Tier 2 capital includes perpetual preferred stocks, value appreciation of fixed assets, 45% of unrealized holding gains of long-term equity investments, operation reserves, convertible bonds, allowance for loan and lease losses (except the reserves created against identified losses), long-term subordinated debt and long-term non-perpetual preferred stock.[5] |
| Tier 3 Capital |
Tier 3 capital includes short-term subordinated debt and short-term non-perpetual preferred stock. These two items should be unsecured; be fully paid up; have an original maturity of at least two years; be not redeemable before the arranged date; include a lock-in clause precluding payment of either interest or principal in case the payment causes the issuing organization's risk-based capital ratio to fall below the minimum requirement. The sum of tier 2 and tier 3 capitals for market risk capital charge may not exceed 250% of tier 1 capital.[5] |
| Time Deposits |
Time deposits refer to deposits of a fixed term which can be withdrawn by the depositor upon maturity by presentation of a deposit certificate or by other agreed means. Time deposits shall not be withdrawn before maturity, but the depositor may terminate a time deposit by giving a 7-day prior notice to the bank. In case no notice is given 7 days before the termination, it can also be done upon agreement by the deposit banks. The interest paid to deposits which are terminated before maturity will be calculated at 80 percent of the bank's published time deposit rates for the actual deposit period, and no interest will be paid if the actual deposit period is less than one month.[4]
|
| Transfer |
To transfer money from one account to another.[4] |
| Treasury Bills (T-bills) |
Treasury bills are short-term obligations issued by the central government with a maturity of less than one year in order to meet the need for short-term funds. Treasury bills are usually issued with maturities of 91, 182, 273 and 364 days. Treasury bills are issued at a discount and paid at par value at maturity. [4]
|
| Treasury Check |
Refers to the treasury check of the Republic of China, where the National Treasury Agency of the Ministry of Finance acts as the drawer and the Taipei Disbursing Office of the Ministry of Finance issues the check on the drawer's behalf.[4] |
| Treasury Deposits |
Treasury deposits are the funds deposited by the Ministry of Finance at the national treasury deposits account with the Central Bank.[4]
|
| Unwind |
In some deferred net settlement systems, if a participant is unable to meet his obligations, the payments involved will be removed in part or in all from the calculation of multilateral net positions. This is sometimes referred to as "unwinding" or "partial unwinding".[1]
|
