Page 21 - 中央存保108年年報

2. Implementation of differential premium rates
A. Article 16, paragraph 3 of the Deposit Insurance Act provides that deposit insurance premium rates shall be drawn up by the CDIC and submitted to the Financial Supervisory Commission (FSC) for its approval. The premium rates are as follows:
a. Domestic banks and Taiwan branches of foreign and mainland Chinese banks have a five- tiered system of risk-based premium rates (0.05%, 0.06%, 0.08%, 0.11%, and 0.15%) for covered deposits, with a flat premium rate of 0.005% for eligible deposits in excess of the coverage limit.
b. Credit cooperatives have a five-tiered system of risk-based premium rates (0.04%, 0.05%, 0.07%, 0.10%, and 0.14%) for covered deposits, with a flat premium rate of 0.005% for eligible deposits in excess of the coverage limit.
c. The credit departments of farmers' and fishermen's associations have a five-tiered system of risk-based premium rates (0.02%, 0.03%, 0.04%, 0.05%, and 0.06%) for covered deposits, with a flat premium rate of 0.0025% for eligible deposits in excess of the coverage limit.
B. As of 31 December 2019, first-tier premium rate was applied at 76.4% of all insured institutions, second-tier rate at 13.3%, third-tier rate at 8.3%, fourth-tier rates at 2.0%, and fifth-tier rate at 0%.
3. Maximum coverage limit and coverage status
The coverage limit has been raised to NT$3 million and the scope of coverage expanded to include foreign currency deposits and interest on deposits since January 2011. As of 31 December 2019 the total amount of eligible deposits stood at approximately NT$46 trillion, and deposits within the NT$3 million maximum coverage limit totaled roughly NT$23 trillion. The ratio of deposits within
the coverage limit to all eligible deposits was 51%, while the ratio of covered deposit accounts to the total number of deposit accounts was 98.2%. This indicates that the NT$3 million deposit insurance maximum coverage limit has protected the majority of small depositors and effectively increased the confidence of depositors in financial institutions.
4. Accumulation of deposit insurance payout special reserves
Premium revenues in 2019 came to NT$10 billion, including NT$9.7 billion from general financial institutions and NT$0.3 billion from agricultural financial institutions. As of year-end 2019, the deposit insurance payout special reserves of general financial institutions stood at roughly NT$96.6 billion, while the deposit insurance payout special reserves of agricultural financial institutions stood at roughly NT$5.4 billion. These figures translate to ratios of deposit insurance payout special reserves to covered deposits of 0.44% and 0.38%, respectively.
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中央存保一〇八年報
Business Operations
2019 Annual Report