The Central Bank of China

PRESS RELEASE Release Date: January 4, 2003




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Important Measures in December, 2002

In line with the policy of liberalization and internationalization, and for further development of foreign exchange business, the Central Bank of China (CBC) took the following measures in December, 2002:

1.Approved International Commercial Bank of China, Hsinchu Bank, Cathay United Bank , BNP Paribas, Taipei Branch to commence internet banking business involving foreign currencies.

2.Approved the following Authorized Banks to operate derivates business:

(1)Ta Chong Bank, Ltd. operates Foreign Currency Interest Rate Options business.

(2)United World Chinese Bank operates Principal Guaranteed NT Dollar Structured Deposits business which is composed of NT Dollar Time Deposit and one of Foreign Currency Equity Options , Foreign Currency Options and Foreign Currency Interest Rate Options.

(3)Taishin International Bank operates Foreign Currency Equity Options business.

(4)Entie Commercial Bank operates Foreign Currency Margin Trading business

(5)Deutsche Bank, Taipei Branch operates (a) Principal Guaranteed NT Dollar Structured Deposits business which is composed of NT Dollar Time Deposit and Foreign Currency Interest Rate Options , (b) "Foreign Currency Interest Rate Swaptions" , (c) Principal Guaranteed NT Dollar or Foreign Currency Structured Deposits which is composed of any combination of Time Deposits linked with Foreign Currency Interest Rate Swaps , Foreign Currency Interest Rate Options , Foreign Currency Interest Rate Swaptions.

(6)Land Bank of Taiwan commences the business of Foreign Currency Trust Funds Earmarked for Investment in Foreign Securities.

3. Authorized 4 branches of Chinatrust Commercial Bank to operate foreign exchange business. In addition, 28 non-authorized foreign exchange banks were approved to sell/buy foreign currency banknotes and traveler's checks. As of the end of December, there were 1,036 authorized foreign exchange banks, including 970 domestic banks and 66 foreign banks.