Regulations Governing the Business Territory of a Credit Cooperative Article 5

A credit cooperative that is in close proximity to a county or a county-level-or-above city/municipality that currently does not have a credit cooperative, and that meets the following standards, may apply to expand its business territory to include that county or county-level-or-above city/municipality:1. It has allocated sufficient valuation reserve to meet the minimum standard based on potential asset losses as stated on the most recent financial examination report, and has no accumulated deficit after the final accounting of the fiscal year.2. The ratio of equity capital to risk-based capital complies with the minimum standard set by the Competent Authority.3. All non-performing loans and non-accrual loans that are two years or more overdue, after subtracting the estimated recoverable portion, have already been written off as bad debts.