The Banking Act of The Republic of China Article 64

If the losses of a bank exceed one third (1/3) of its capital, the bank's directors or supervisors shall immediately report such information to the central competent authority.The central competent authority shall, within three (3) months, require the bank with circumstances prescribed in the preceding paragraph to replenish its capital within the prescribed period. If the bank fails to replenish its capital within the prescribed period, the central competent authority shall dispatch officials to take conservatorship over the bank or order the bank to suspend its businesses.