Regulations Governing the Capital Adequacy and Capital Category of Banks Article 11
The range of Tier 2 capital shall mean the total amount of the following items reduces the total amount of the deductible items in accordance with the rules for calculation methods.1. Cumulative perpetual preferred stock and its capital stock premium.2. Cumulative perpetual subordinated debts.3. Convertible subordinated debts4. Long-term subordinated debts5. Non-perpetual preferred stock and its capital stock premium6. When first time applying International Financial Reporting Standards in real estate and using the fair value or the re-estimated value method as the deemed cost, the difference in amount between the deemed cost and the book value recognized in retained earnings.7. The 45% of unrealized gains on changes in the fair value of investment properties using fair value method, as well as the 45% of unrealized gains on financial assets measured at fair value through other comprehensive income.8. Operational reserves and loan-loss provisions.9. The cumulative perpetual preferred stock and its capital stock premium, cumulative perpetual subordinated debts, convertible subordinated debts, long-term subordinated debts, and the non-perpetual preferred stock and its capital stock premiums, which are issued by banks' subsidiaries, and are not directly or indirectly held by banks.The operating reserves and loan-loss provisions included in Tier 2 capital as provided in Section 8 of the preceding paragraphmeans the amount of the operations reserves and loan-loss provisions that the bank recognized in excess of the expected loss forthose arecredit impaired,according to International Financial Reporting Standards No. 9.The Tier 2 capital stated in Paragraph 1 shall meet the following requirements, some of which involve the conditions of investors' interest shall be specified in the issuance document.1. The issuance quota of such issuance shall be fully.2. The bank and its affiliated business do not provide guarantee, collateral or other arrangements to enhance the seniority of the holders.3. Non-interest rate step-ups condition or other incentives to redeem.4. The issuance period is more than five years. Recognition in regulatory capital in the remaining five years before maturity will be amorised on a straight line basis.5. After five years of issuance, such debts may not be redeemed earlier or be bought from the market by banks, or the banks with the expectation from investors unless the debt meets the following conditions at the same time: A. Obtain prior approval from the competent authority. B. The debts which may be redeemed earlier or be bought from the market shall meet one of the following requirements: a. The capital adequacy ratio of the bank after being redeemed shall meet the minimum regulatory capital adequacy ratio. b. Replace the original capital instrument with a capital instrument of equivalent or higher quality.6. The payment of principal or interest shall not be set to be adjusted according to the credit situation of bank.7. The investors shall not be allowed to ask the bank for an early payment of interest unless the distribution is in accordance with the rules of suspension and windup of business, or liquidation.8. The priority order for the distribution of the earnings and assets of the holder of Tier 2 capital is the same as that of a common stock holder when the competent authority assigned officials to take receivership over the bank, order such a bank to suspend and wind up business, or liquidate the bank.9. The convertible subordinated debts shall meet the following requirements except the above mentioned rules: A. The issuance period is less than ten years. B. The convertible bonds upon their maturity dates shall be converted into common stocks or perpetual preferred stocks; before maturity dates, they may only be converted into common stocks or perpetual preferred stocks. Other conversion methods shall be approved by the competent authority first.The total amount of the so-called operational reserve and loan-loss provision in the Tier 2 capital, if banks adopt the standardized approach for credit risk may not exceed 1.25% of the credit risk-weighted assets, and if banks adopt the internal ratings-based approach, may not exceed 0.6% of the credit risk-weighted assets.
中文原文 銀行資本適足性及資本等級管理辦法第11條
第二類資本之範圍為下列各項目之合計數額減依計算方法說明所規定之應扣除項目之金額：
一、永續累積特別股及其股本溢價。
二、無到期日累積次順位債券。
三、可轉換之次順位債券四、長期次順位債券。
五、非永續特別股及其股本溢價。
六、不動產於首次適用國際會計準則時，以公允價值或重估價值作為認定成本產生之保留盈餘增加數。
七、投資性不動產後續衡量採公允價值模式所認列之增值利益及透過其他綜合損益按公允價值衡量之金融資產未實現利益之百分之四十五。
八、營業準備及備抵呆帳。
九、銀行之子公司發行非由銀行直接或間接持有之永續累積特別股及其股本溢價、無到期日累積次順位債券、可轉換之次順位債券、長期次順位債券、非永續特別股及其股本溢價。
前項第八款得列入第二類資本之營業準備及備抵呆帳，係指銀行所提營業準備及備抵呆帳超過銀行依國際財務報導準則第九號規定就已產生信用減損者所估計預期損失而提列之金額。
第一項之第二類資本工具應符合下列條件，其中涉及投資人權益之條件，應載明於發行契約：
一、當次發行額度，應全數收足。
二、銀行或其關係企業未提供保證、擔保品或其他安排，以增進持有人之受償順位。
三、無利率加碼條件或其他提前贖回之誘因。
四、發行期限五年以上，發行期限最後五年每年至少遞減百分之二十。
五、發行五年後，除同時符合下列情形外，不得由發行銀行提前贖回或由市場買回，亦不得使投資人預期銀行將行使提前贖回權或由市場買回：
（一）經主管機關核准。
（二）提前贖回或由市場買回須符合下列條件之一：1.計算提前贖回後銀行資本適足比率仍符合法定資本適足比率。
2.須以同等或更高品質之資本工具替換原資本工具。
六、股利或債息之支付不得設定隨銀行信用狀況而變動。
七、除銀行清算或清理依法所為之分配外，投資人不得要求銀行提前償付未到期之本息。
八、銀行發生經主管機關派員接管、勒令停業清理、清算時，第二類資本工具持有人之清償順位與普通股股東相同。
九、可轉換之次順位債券，除應符合以上各款規定外，並應符合下列條件：
（一）發行期限在十年以內。
（二）於到期日或到期日前，應轉換為普通股或永續特別股，其他轉換方式應經主管機關核准。
第二類資本所稱營業準備及備抵呆帳，採信用風險標準法者，其合計數額，不得超過信用風險加權風險性資產總額百分之一點二五，採信用風險內部評等法者，其合計數額，不得超過信用風險加權風險性資產總額百分之零點六。
一、永續累積特別股及其股本溢價。
二、無到期日累積次順位債券。
三、可轉換之次順位債券四、長期次順位債券。
五、非永續特別股及其股本溢價。
六、不動產於首次適用國際會計準則時，以公允價值或重估價值作為認定成本產生之保留盈餘增加數。
七、投資性不動產後續衡量採公允價值模式所認列之增值利益及透過其他綜合損益按公允價值衡量之金融資產未實現利益之百分之四十五。
八、營業準備及備抵呆帳。
九、銀行之子公司發行非由銀行直接或間接持有之永續累積特別股及其股本溢價、無到期日累積次順位債券、可轉換之次順位債券、長期次順位債券、非永續特別股及其股本溢價。
前項第八款得列入第二類資本之營業準備及備抵呆帳，係指銀行所提營業準備及備抵呆帳超過銀行依國際財務報導準則第九號規定就已產生信用減損者所估計預期損失而提列之金額。
第一項之第二類資本工具應符合下列條件，其中涉及投資人權益之條件，應載明於發行契約：
一、當次發行額度，應全數收足。
二、銀行或其關係企業未提供保證、擔保品或其他安排，以增進持有人之受償順位。
三、無利率加碼條件或其他提前贖回之誘因。
四、發行期限五年以上，發行期限最後五年每年至少遞減百分之二十。
五、發行五年後，除同時符合下列情形外，不得由發行銀行提前贖回或由市場買回，亦不得使投資人預期銀行將行使提前贖回權或由市場買回：
（一）經主管機關核准。
（二）提前贖回或由市場買回須符合下列條件之一：1.計算提前贖回後銀行資本適足比率仍符合法定資本適足比率。
2.須以同等或更高品質之資本工具替換原資本工具。
六、股利或債息之支付不得設定隨銀行信用狀況而變動。
七、除銀行清算或清理依法所為之分配外，投資人不得要求銀行提前償付未到期之本息。
八、銀行發生經主管機關派員接管、勒令停業清理、清算時，第二類資本工具持有人之清償順位與普通股股東相同。
九、可轉換之次順位債券，除應符合以上各款規定外，並應符合下列條件：
（一）發行期限在十年以內。
（二）於到期日或到期日前，應轉換為普通股或永續特別股，其他轉換方式應經主管機關核准。
第二類資本所稱營業準備及備抵呆帳，採信用風險標準法者，其合計數額，不得超過信用風險加權風險性資產總額百分之一點二五，採信用風險內部評等法者，其合計數額，不得超過信用風險加權風險性資產總額百分之零點六。