Central Bank of the Republic of China (Taiwan)

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FAQ

What are the criteria for being a clearing bank?

All domestic or foreign banks that satisfy the following requirements are eligible to provide CGSS services as clearing banks:
1. Net worth after the accounting books were closed at the end of the most recent year is at least NT$15 billion.
2. The ratio of regulatory capital to risk-weighted assets for the most recent half year reviewed by a certified public accountant (CPA) is above the minimum requirement set forth by the competent authority.
3. Average return on equity before taxes for the most recent three years audited by a CPA is above 6%.

Under any of the following circumstances, a bank may also apply for being appointed as a clearing bank:
1. A surviving bank or a newly established bank on account of merger/consolidation of a clearing bank.
2. A recipient bank acquiring the clearing business from a clearing bank or a transferee bank acquiring shares from a clearing bank.
3. In case of merger/consolidation, a non-clearing bank subsidiary proposed to be a clearing bank by the financial holding company.

Each clearing bank is required to enter into an agreement with the CBC. Should a clearing bank breach its commitment, the CBC reserves the right to suspend or terminate the appointment.