Regulations Governing Foreign Bank Branches And Representative Offices Article 19-3

For a foreign bank branch that accepts deposit of less than NT$1,500,000 from individuals and has more than five hundred such accounts, and the total amount of deposits of less than NT$1,500,000 from individuals exceeds 1 percent of total amount of NTD deposits accepted by the branch, such branch's outstanding loans shall not be more than twenty (20) times the branch's net worth after the accounting books were closed at the end of the previous fiscal year. For a foreign bank branch that does not offer retail deposit business or if its retail deposit business does not reach the thresholds set forth above, such branch's outstanding loans shall not be more than forty(40) times the branch's net worth after the accounting books were closed at the end of the previous fiscal year.For a foreign bank branch that accepts deposit of less than NT$1,500,000 from individuals and has more than five hundred such accounts, and the total amount of deposits of less than NT$1,500,000 from individuals exceeds 1 percent of total amount of NTD deposits accepted by the branch, such branch's outstanding balance of credit extensions other than loans shall not be more than fifteen (15) times the branch's net worth after the accounting books were closed at the end of the previous fiscal year. For a foreign bank branch that does not offer retail deposit business or if its retail deposit business does not reach the thresholds set forth above, such branch's outstanding balance of credit extensions other than loans shall not be more than twenty (20) times the branch's net worth after the accounting books were closed at the end of the previous fiscal year.The term "net worth" mentioned in the two preceding paragraphs shall mean the net worth of a foreign bank branch after the accounting books were closed at the end of the previous fiscal year. Where the net worth of a foreign bank branch changes due to the inward remittance of operating fund, outward remittance of earnings or a merger in the current year, such changes shall be included in the calculation of the branch's net worth in the previous fiscal year and determined after obtaining the review report of a certified public accountant.