Central Bank of China

PRESS RELEASE Release Date: June 9,2001




--------------------------------------------------------------------------------

For further liberalization, internationalization and development in foreign exchange business, the Central Bank of China has taken the following measures in May:

1.To streamline the approval procedure for derivatives business, Authorized Banks will be allowed to run foreign currencies (not involving NT$) derivatives upon submitting the following documents:(1) Compliance Declaration. (2) Legal paper approved by the board of directors of domestic banks or authorized by the head office of foreign banks. (3) Risk disclosure Statement. (4) Qualified and experienced personnel list.

2.To streamline the approval procedure for electronic banking business involving foreign currencies. Authorized banks should submit the operation plans to the Foreign Exchange Department for approval.

3.To approve Sanwa Bank Ltd. and Land Bank of Taiwan to operate "Foreign Currency Options" business.

4.To approval Taishin International Bank to operate electronic banking business involving foreign currencies.

5.To authorize 3 branches of 2 domestic banks to operate foreign exchange business. In addition, 51 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknote and traveler's check. At the end of May, there were totally 963 authorized foreign exchange banks, including 894 domestic banks and 69 foreign banks.