Regulations Governing the Capital Reduction at the Subsidiaries of a Financial Holding Company Article 3
If a financial holding subsidiary company meets the following conditions, the financial holding company is allowed to apply for capital reduction from the competent authority on behalf of the subsidiary company:1. The financial reports in the most recent year and six months (if the applicant submits its application for over six months) being audited by an accountant, who then issues a auditor’s report without unqualified opinion or modified unqualified opinion; further, the financial status of the company is good while having no losses and cumulative losses.2. The company has provided the internal control improvement plan audited by an accountant and actually made the improvements in the most recent year and six months (if the applicant submits its application for over six months).3. The case checking form filled out or audited by an accountant. Except the improvements mentioned in Paragraph 4 being approved by the competent authority, it doesn’t indicate that there is a violation of regulations or company rules.4. The company has no significant penalties or sanctions imposed by the competent authorities within the most recent year for violations of financial laws or regulations directly related to the application, or there is not solid evidence to prove there are events influencing its solid operation. Or the company had situations mentioned above, but the situations were rectified or specific rectification measures were proposed to and approved by the competent authority.Besides the preceding regulations, the capital reduction of a banking subsidiary company and an insurance subsidiary company should also meet the following regulations:1. A banking subsidiary company:(1) The banking subsidiary company has passed the most recent financial examination or been audited by the competent authority and had no following situation: insufficient loan loss reserves (including the guaranty responsibility reserves), unfaithful report of overdue loans, insufficient loss reserves for non-credit assets, and others or the conditions mentioned above have been improved.(2) For the most recent self-reported financial business items of a banking subsidiary company, all items should meet the following conditions:i. the overdue loan ratio is less than the average of domestic banks and is below 1.5%;ii. the guarantee advance payment ratio is less than 2.5%;iii. the coverage ratio of allowances for bad debt is greater than the average of domestic banks and is over 80%.2. An insurance subsidiary company:(1) The credit rating of the insurance subsidiary company in the most recent year has reached over the rating of twAA of the Taiwan Ratings Corporation or the equivalent or above ratings of other international rating companies approved by the competent authority. Further, the average ROE in the most recent two years is higher than the average value of the industry.(2) The retained business combined rate and the direct business combined rate of the property insurance subsidiary company in the most recent two year are less than 100% and the ratio of the retained premium versus the owner equity is less than 300%. The average investment return rate of a life insurance subsidiary company in the most recent two years is higher than the average of the industry and its capital cost rate in the most recent two years; furthermore, the ratio of stockholder's equity versus the total capital in the most recent two years is 1.5 times higher than the average value of the industry.
中文原文 金融控股公司之子公司減資辦法第3條
金控子公司符合下列各款條件者，金融控股公司得代子公司向主管機關申請減資：
一、最近年度及半年度（申請日期逾年度六個月者）財務報表均經會計師查核簽證出具無保留意見或修正式無保留意見，且財務健全，無虧損及累積虧損情形。
二、最近年度及半年度（申請日期逾年度六個月者）已依會計師於查核簽證時所出具之內部控制改進建議書之建議確實改進。
三、所填報或簽證會計師覆核之案件檢查表，除第四款之情形已具體改善經主管機關認可者外，未顯示有違反法令或公司章程之情事。
四、最近一年內未發生與申請案有直接關聯之違反金融法規受主管機關重大裁罰或處分，或無其他事實顯示有礙健全經營之虞。
或有上開情事已具體改善、提出具體可行改善措施並經主管機關認可。
銀行子公司及保險子公司減資，除依前項規定外，另應符合下列規定：
一、銀行子公司：
（一）銀行子公司於最近一次金融檢查或經主管機關審查，無備抵呆帳（含保證責任準備）提列不足、逾期放款列報不實、非授信資產損失準備提列不足等情事，或有該等情事但已改善者。
（二）銀行子公司最近一次自行申報之財務業務項目，應符合下列所有條件：1.逾期放款比率未逾全體本國銀行平均數，且未逾百分之一點五；2.保證墊款比率未逾百分之二點五；3.備抵呆帳覆蓋率達全體本國銀行平均數以上，且達百分之八十以上。
二、保險子公司：
（一）保險子公司最近一年內信用評等達中華信用評等股份有限公司twAA等級以上，或其他經主管機關認可之國際信用評等事業同等級以上之評等，且其最近二年之平均業主權益收益率大於全業平均值。
（二）財產保險子公司最近二年度之自留業務綜合率及直接業務綜合率均小於百分之百，且自留保費對業主權益比率小於百分之三百；人身保險子公司最近二年之平均投資報酬率大於全業平均值及其近二年資金成本率，且近二年之股東權益對總資產之比率大於全業平均值之一點五倍。
一、最近年度及半年度（申請日期逾年度六個月者）財務報表均經會計師查核簽證出具無保留意見或修正式無保留意見，且財務健全，無虧損及累積虧損情形。
二、最近年度及半年度（申請日期逾年度六個月者）已依會計師於查核簽證時所出具之內部控制改進建議書之建議確實改進。
三、所填報或簽證會計師覆核之案件檢查表，除第四款之情形已具體改善經主管機關認可者外，未顯示有違反法令或公司章程之情事。
四、最近一年內未發生與申請案有直接關聯之違反金融法規受主管機關重大裁罰或處分，或無其他事實顯示有礙健全經營之虞。
或有上開情事已具體改善、提出具體可行改善措施並經主管機關認可。
銀行子公司及保險子公司減資，除依前項規定外，另應符合下列規定：
一、銀行子公司：
（一）銀行子公司於最近一次金融檢查或經主管機關審查，無備抵呆帳（含保證責任準備）提列不足、逾期放款列報不實、非授信資產損失準備提列不足等情事，或有該等情事但已改善者。
（二）銀行子公司最近一次自行申報之財務業務項目，應符合下列所有條件：1.逾期放款比率未逾全體本國銀行平均數，且未逾百分之一點五；2.保證墊款比率未逾百分之二點五；3.備抵呆帳覆蓋率達全體本國銀行平均數以上，且達百分之八十以上。
二、保險子公司：
（一）保險子公司最近一年內信用評等達中華信用評等股份有限公司twAA等級以上，或其他經主管機關認可之國際信用評等事業同等級以上之評等，且其最近二年之平均業主權益收益率大於全業平均值。
（二）財產保險子公司最近二年度之自留業務綜合率及直接業務綜合率均小於百分之百，且自留保費對業主權益比率小於百分之三百；人身保險子公司最近二年之平均投資報酬率大於全業平均值及其近二年資金成本率，且近二年之股東權益對總資產之比率大於全業平均值之一點五倍。