Page 45 - 中央存保108年年報

XI. Cooperated with the Competent Authority's Key Financial Industry Policies
1. Utilized and managed the Financial Industry Special Reserve Fund on behalf of the FSC
The FSC has entrusted the utilization and management of the Financial Industry Special Reserve Fund to the CDIC in accordance with the provisions of the Regulations on the Utilization and Management of the Financial Industry Special Reserve Fund. The CDIC has diversified the Reserve Fund's asset allocations to give balanced consideration to the needs for safety, liquidity, and returns. As of year-end 2019, the Special Reserve Fund assets under the CDIC management stood at approximately NT$70.7 billion.
2. Strengthened the monitoring of specific-risk businesses in line with the supervisory policies of the competent authority
Acting pursuant to the Operating Guidelines of the Financial Supervisory Commission for Off-site Monitoring, the CDIC issued analytical reports on the financial and business conditions of insured institutions in order to share supervisory information. Also, the FSC entrusted the CDIC to analyze or monitor domestic banks' risk exposures overseas (including in New Southbound Policy countries) and in mainland China, as well as risks arising from banks' handling of OTC financial derivatives and domestic structured products. Moreover, to assist with financial supervision and strengthen risk controls, the CDIC presented periodic and occasional reports to the FSC and arranged the handling and follow-up tracking of significant credit risk cases reported by insured institutions. Also, to assist with the FSC's supervisory policies, the CDIC has been planning to adopt a new system for data reporting and collection to improve the monitoring of liquidity at internet-only banks.
3. Supported the competent authority's supervision of systemically important banks
To prevent future business crises at major banks and financial holding companies in Taiwan, thus triggering systemic risks, the FSC convened a series of meetings to discuss related matters and has: (a) developed a set of criteria for identifying domestic systemically important banks; and (b) drafted regulations that require each systemically important bank to file a set of Response Measures for Business Crises with the FSC and the CDIC. The CDIC has also drafted the required content of call reports and a set of review criteria. In the future, the CDIC will continue to support the competent authority's supervision of systemically important banks.
4. Supported the competent authority by sending personnel to assist with information security examinations
To help the FSC improve the quality of information security examinations at domestic financial institutions, the CDIC once again in 2019 sent three staff with information systems expertise to help the FSC's Financial Examination Bureau carry out information security examinations.
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中央存保一〇八年報
Business Operations
2019 Annual Report