To facilitate the extension of specialized credits, the central competent authority may approve the establishment of a specialized bank or designate an existing bank to perform the extension of such credits.

The term, "specialized credit" as used in the preceding article shall be classified into the following categories:
1.Industrial credits;
2.Agricultural credits;
3.Export-import credits;
4.Small and medium enterprise credits;
5.Real estate credits; and
6.Local credits.

The scope of business of a specialized bank shall be prescribed by the competent authority in accordance with the scopes prescribed in Article 3, taking into consideration their principal functions and the need for economic development.
Unless otherwise prescribed in laws or by the competent authority, Articles 73 through 76 shall apply to specialized banks.

Unless otherwise prescribed by the competent authority, a specialized bank whose principal function is to extend medium-term and long-term loans may issue bank debentures. Article 72-1 applies mutatis mutandis to such issuance.
The funds raised by a specialized bank from the issuance of bank debentures in accordance with the preceding paragraph shall be used exclusively for investing in and extending medium-term and long-term loans to its specialization.

A specialized bank which extends industrial credits is an industrial bank.
The principal functions of an industrial bank shall be to extend medium-term and long-term credits to industrial, mining, transportation and other public utilities enterprises.
An industrial bank may invest in manufacturing businesses; the scope of manufacturing business shall be prescribed by the competent authority.
An industrial bank may accept deposits; provided that the deposits shall be limited to its customers which are companies invested by the bank or to which the bank extends credit, insurance enterprises and foundations established in accordance with applicable laws and the government agencies.
The incorporation criteria, credit extensions, securities investment, enterprise investments, deposit taking and the scope and limits of the issuance of bank debentures and the administration rules for an industrial bank shall be prescribed by the competent authority.

Where an industrial bank directly invests in manufacturing businesses in the following circumstances, such bank shall obtain the consent of more than three-quarters of its directors present at a board meeting at which two-thirds of the directors are present; and its total investment amount shall not exceed five percent (5%) of the bank's net worth as of the end of the preceding fiscal year:
1.The bank's major shareholder, responsible persons or their affiliates;
2.The enterprises operated by the bank's major shareholder, responsible persons or their related parties in sole proprietorship or partnership;
3.The enterprises whose ten percent (10%) of their issued shares or paid-in capital are held singly or collectively by the bank’s major shareholder, responsible persons or their related parties;
4.The enterprises whose directors, supervisors or managers are the bank's major shareholder, responsible persons or their related parties, provided that the above shall not apply to companies whose directors, supervisors or managers are concurrent due to the bank's investment relationship.
The term, "affiliate" as used in Subparagraph 1 of the preceding paragraph shall have the meaning prescribed in Articles 369-1 through 369-3, 369-9 and 369-11 of the Company Act.
The term "related parties" as used in Subparagraphs 2 through 4 of Paragraph 1 shall include the spouse, blood relatives within three degree and marriage relatives within two degree of the bank's major shareholders and responsible persons.

A specialized bank which extends agricultural credits is an agricultural bank.
The principal functions of an agricultural bank shall be to provide liquidity to the finance in rural areas and extend credits needed for the agricultural, forestry, fishing, animal production and related enterprises.

To strengthen the functions of agricultural credits, an agricultural bank may absorb funds in rural areas through the farmers' associations and extend agricultural credits and engage in financial businesses related to farmers' livelihood.

A specialized bank which extends export-import credits is an export-import bank.
The principal functions of an export-import bank shall be to extend medium-term and long-term credits to assist in expanding exportations and importing equipment and raw materials needed by domestic industrial enterprises.

To facilitate the supply of important raw materials needed by domestic industrial enterprises, an export-import bank, with the approval of the central competent authority, may extend credits to enterprises for investment in obtaining important raw materials in foreign countries.

A specialized bank which extends credits to small and medium enterprises is a small and medium enterprise bank.
The principal functions of a small and medium enterprise bank shall be to extend medium-term and long-term credits to small and medium enterprises to assist them in improving their productive equipment and financial structure and strengthening their management and operations.
The scope of small and medium enterprises shall be as proposed by the central competent authority in charge of economic affairs and submitted to the Executive Yuan for approval.

A specialized bank which extends real estate credits is a real estate credit bank.
The principal functions of a real estate credit bank shall be to extend medium-term and long-term credits needed for land development, urban improvement, community development, road construction, tourist facilities and housing constructions.

A specialized bank which extends local credits is a citizens' bank.
The principal functions of a citizens' bank shall be to extend short-term and medium-term credits to meet the needs of the regional development and local citizens.

A citizens' bank shall be operated by district. In principle, there shall be only one such bank in each district.
The total amount of loans extended by a citizens' bank to each customer shall not exceed a prescribed amount.
The division of districts for the incorporation of a citizens' bank and the limits to the amount of loans extended to each customer shall be as prescribed by the central competent authority.
Chapter VI Investment And Trust Companies