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5. Amendment to Approval Standards for Financial Institutions Applying to Participate in Deposit Insurance -Approved by the FSC, effective on 27 September 2019
The CDIC has taken actions to safeguard depositors' interests by sharply reducing the period of time during which newly established financial institutions operate prior to joining the deposit insurance system. Whereas newly established financial institutions were formerly required to apply for deposit insurance "within six months of commencement of their business operations," the amended Approval Standards now require such institutions to submit their application for deposit insurance "after obtaining approval of incorporation from the related competent authorities and no later than two months after commencement of their business operations." Also, in response to Fintech development, and in order to control insured risks, the amended provisions list the documents that a financial institution must submit to the CDIC for review when applying to participate in deposit insurance, and they specify that such submissions shall include the applying institution's plan for disclosure of whether the institution itself and the financial products it offers are covered under the deposit insurance mechanism.
6. Amendment to CDIC Guidelines for Deposit Insurance Premium Collection Procedures - Approved on 6 August 2019
To bring about more efficient collection of deposit insurance premiums and to enhance internal controls: under the amended Guidelines, (a) insured institutions are allowed, in the event of premium underpayment or overpayment below specific amount, to be excused from supplementing or refunding the difference; and (b) new provisions have been added to govern supplementary payment or refunding of premiums after an on-site inspection has been performed to check the accuracy of the premium assessment bases and the risk indicators for risk-based premium rates.
7. CDIC held "Communication Meeting on the Participation of Internet-Only Banks in the Deposit Insurance System"
On 2 August 2019, the FSC approved applications of the establishment of three internet-only banks. Accordingly the CDIC convened a "Communication Meeting on the Participation of Internet- Only Banks in the Deposit Insurance System" on 24 September 2019 to ensure that those preparing to launch the three new banks will have a timely understanding of what is involved in applying for participation in the deposit insurance scheme. At the meeting, the CDIC provided explanations regarding various topics—such as "procedures for joining the deposit insurance scheme" and "matters requiring an insured institution's cooperation"—in order to help the new banks qualify as quickly as possible for participating in deposit insurance, thereby safeguarding the interests of their depositors.
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中央存保一〇八年報
Business Operations
2019 Annual Report