Central Bank of China

PRESS RELEASE Release Date: July 7, 2001




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Important Measures in June

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

1. To approve First Commercial Bank to operate Phone Banking business involving foreign currencies.

2. To approve Bao Dao Commercial Bank , Land Bank of Taiwan , Union Bank of Taiwan , The Hongkong & Shanghai Bank to operate Internet Banking business involving foreign currencies.

3. To approve Hua Nan Commercial Bank to operate P.C. Banking business involving foreign currencies.

4. To approve the following Authorized Banks to run derivatives business:

(1)Fubon Commercial Bank operates "Foreign Currency Trust Funds of Investing in Foreign Securities" business.

(2)E. Sun Commercial Bank Ltd. operates "Foreign Interest Rate Swaps", "Foreign Currency Cross Currency Swaps ", "Foreign Currency Margin Trading", "NT$/FCY Cross Currency Swaps"business.

(3)Deutsche Bank AG Taipei Branch operates "NT Dollar Structured Deposits"business which includes NT Dollar Deposits linked with Foreign Currency Options.

(4)American Express Bank Ltd., Taipei Branch operates "Foreign Currency Trust Funds of Investing in Foreign Securities"business.

(5)First Commercial Bank operates "Foreign Currency Structured Deposits "business which includes 1.Foreign Currency Time Deposits linked with Foreign Currency Options 2.Foreign Currency Time Deposits linked with Foreign Interest Rate Options.

(6)The Tokai Bank Ltd., Taipei Branch operates "NT$/FCY Options"business.

5.To authorize 3 branches of 2 domestic banks to operate foreign exchange business. In addition, 18 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknote and traveler's check. At the end of June, there were totally 966 authorized foreign banks, including 897 domestic banks and 69 foreign banks.