(Application Criteria)
When a financial institution that meets the following criteria engages in Renminbi purchase or sale business for the first time, the Bank will consult with the Financial Supervisory Commission, Executive Yuan (referred to as the “FSC” hereunder) or the Council of Agriculture, Executive Yuan (referred to as the “COA” hereunder) to seek their consent before approval:
1. Its personnel dealing with the Renminbi purchase or sales business have had business experience in buying and selling Renminbi notes or have been trained to authenticate Renminbi notes; and
2. Having the ability to arrange Renminbi notes coverage.
The branch of a financial institution in the preceding paragraph that has obtained approval may proceed to engage in Renminbi purchase or sale business, provided the branch meets the criteria set forth in subparagraph 1 of the preceding paragraph and is free of violation in its foreign exchange business in the past three months, and has filed a report with the Bank and the FSC or the COA for reference two weeks before it commences the business. Where the branch of a financial institution has suspended the aforesaid business, the financial institution shall file a report with the Bank and the FSC or the COA for reference in two weeks after business suspension.
An exchange bureau meeting the criteria set forth in subparagraph 1of paragraph 1 may apply to the Bank of Taiwan for approval to engage in Renminbi purchase business.
A financial institution that meets the following criteria may engage in Renminbi coverage business under the Bank’s approval after obtaining the consent of the Bank in consultation with the FSC:
1. The financial institution is an authorized foreign exchange bank;
2. The assets of the financial institution as stated in its latest CPA-certified financial report are worth NT$2 trillion or more;
3. The financial institution’s latest long-term debt rating is A3 or higher from Moody’s Investors Service or A- or higher from Standard and Poor’s Corp;
4. The financial institution’s monthly average purchase and sale of Renminbi notes combined in the past year is 100 million RMB or more;
5. The financial institution’s ratio of equity capital to risk-weighted assets in the latest quarter is 10% or higher; and
6. The financial institution’s non-performing loan ratio is less than 1.5% in the latest quarter.

(Document Review and Submission of Additional Documents)
When a bank, credit cooperative or Chunghwa Post Co., Ltd. applies for approval specified in the paragraph 1 of the foregoing article, the head office of the financial institution shall submit the following documents to the Bank and the FSC:
1.A business plan;
2.Names of branches to engage in the business and documents evidencing the experiences of personnel dealing with or checking the purchase and sale of Renminbi or the qualification of having attended trainings on authenticating Renminbi notes;
3.Supporting documents evidencing the ability to arrange Renminbi notes coverage;
4.Supporting documents evidencing the ability to authenticating Renminbi notes and a risk management statement; and
5.Other designated documents.
When the Agricultural Bank of Taiwan Co., Ltd. (referred to as the “Agricultural Bank of Taiwan” hereunder), the credit department of farmers’ association or the credit department of fishermen’s association applies for approval specified in paragraph 1 of the foregoing article, the Agricultural Bank of Taiwan shall submit the following documents to the Bank and the FSC:
1. Application form;
2. A business plan;
3. The minutes of the board of directors’ meeting;
4. Supporting documents evidencing compliance with the criteria set forth in paragraph 4 of the foregoing article; and
5. Other designated documents.
Where the documents submitted by a financial institution to apply for approval to engage in Renminbi purchase or sale business or Renminbi coverage business are incomplete or the required information is incomplete, and supplementary information or documents asked by the Bank are not submitted prior to the deadline, the Bank may reject the application.

(Rejection of Application)
The Bank may reject the application of a financial institution to engage in Renminbi purchase or sale business or Renminbi coverage business in any of the following situations:
1. The applicant fails to meet the qualification requirements set forth in the paragraph 1 or paragraph 4 of Article 7 herein；
2. The applicant’s license was revoked or cancelled by the Bank, FSC, or COA in the past year or the applicant had violated any of the Regulations herein or any other relevant foreign exchange or Renminbi notes regulations of a serious nature, or has failed to take remedial actions within the period specified by the Bank in the past year;
3. There is evidence indicating that the applicant may hinder the sound operation of the business, or that the applicant is unable to meet financial policy requirements.

(Revocation or cancellation of Approval)
The Bank may revoke or cancel the approval for a financial institution to engage in Renminbi purchase or sale business in the event of any of the following, depending on the seriousness of the violation:
1. The financial institution fails to commence operation in six months after the letter of approval has been issued. A financial institution may request for an extension of the aforesaid deadline. Only one extension of no more than three months can be granted;
2. The financial institution has violated paragraph 3 of Article 4 or any other provisions of these Regulations seriously, or the applicant has failed to take remedial actions within the period specified;
3. After obtaining approval to engage in Renminbi purchase or sale business, the financial institution is found to have provided false information in its application;
4. The financial institution suspends its business, is dissolved, or declared bankruptcy; or
5. There is evidence indicating that the financial institution may hinder the sound operation of the business, or that the financial institution is unable to meet financial policy requirements.
If a financial institution that has been approved to engage in Renminbi coverage business (referred to as “covering bank” hereunder) is found to be in any of the following situations, the Bank may revoke or cancel the approval for its coverage business:
1. The financial institution does not arrange the coverage of Renminbi notes with any financial institutions in areas outside Taiwan Area in three months after the letter of approval has been issued. But with legitimate reasons, the financial institution may request for an extension of the aforementioned deadline.
2. The financial institution refuses to supply or accept Renminbi notes from other financial institutions in the Taiwan Area without legitimate reasons and the situation is of a serious nature or the financial institution has failed to take remedial actions within the period specified.
3. The original application is found to contain false representation after the issuance of an approval letter, or the financial institution subsequently fail to comply with the approval requirements set out in paragraph 4 of Article 7.
4. The financial institution is found to be in a situation prescribed in subparagraph 4 or 5 of the preceding paragraph.