Regulations Governing the Establishment and Compliance Matters of Offshore Banking Branches Article 2

A foreign bank under Article 3, paragraph 1, subparagraphs 2 and 3 of the Act applying to establish an offshore banking branch within the territory of the Republic of China (ROC) shall meet the following conditions:1. A foreign bank has no record of any material regulatory violation or serious misconduct within the most recent 5 years.2. A foreign bank has been ranked, in terms of capital or assets, among the world's top 500 banks during the 1 year before application, or it has conducted transactions with banks and major enterprises of the ROC amounting to at least US$1 billion during the 3 calendar years before application, in which the medium or long term credit provided by it has reached US$180 million. Where there are special provisions in an economic and trade agreement signed by the ROC and the home country of the foreign bank, such special provisions shall prevail.3. A foreign bank's ratio of equity capital to risk-weighted assets is in compliance with the standards set by the competent banking authority.4. A foreign bank has obtained the approval from the competent banking authority in its home country for the establishment of an offshore banking branch within the territory of the ROC, and the competent banking authority in the home country has agreed to cooperate with the ROC in supervision of the bank on a consolidated basis.5. The competent banking authority and the head office in the home country of the foreign bank have the capability to supervise all of its overseas branches on a consolidated basis.