These Standards are enacted pursuant to Paragraph 2 of Article 36 and Article 43 of the Banking Act as well as Article 25 of the Central Bank of the Republic of China Act.

The term "liquidity coverage ratio" in these Standards is calculated by dividing total amount of high-quality liquid assets by total net cash outflows over the next 30 calendar days.
The methods for calculating the liquidity coverage ratio will be determined by the Financial Supervisory Commission ("FSC") in consultation with the Central Bank of the Republic of China ("Central Bank").

The liquidity coverage ratio of banks calculated in accordance with the preceding article shall not be less than 60 percent starting January 1, 2015, 70 percent starting January 1, 2016, 80 percent starting January 1, 2017, 90 percent starting January 1, 2018, and 100 percent starting January 1, 2019. But the liquidity coverage ratio of industrial banks shall not be less than 60 percent for any year starting January 1, 2015.
In view of the financial conditions and actual needs, the FSC may adjust the ratios mentioned in the preceding paragraph after consulting the Central Bank.
Banks that receive FSC approval after the FSC has consulted the Central Bank are not subject to the requirements set out in Paragraph 1 hereof.

Banks shall calculate their liquidity coverage ratio on a monthly basis and report relevant information before the 25th of the following month in accordance with the rules of the Call-Report for information on financial supervision.
Banks whose liquidity coverage ratio does not meet the minimum requirement set out in the preceding article shall forthwith report to the FSC and the Central Bank, including reasons and remedial actions to be taken.
If deemed necessary, the FSC and the Central Bank may ask a bank to report its liquidity coverage ratio and provide relevant data at any time.

Banks shall disclose their liquidity coverage ratio related information on the "Capital Adequacy and Risk Management" section of their own websites in accordance with the FSC regulations.

These Standards do not apply to export-import banks, branches of foreign banks in Taiwan, branches of Mainland commercial banks or Mainland-funded banks in Taiwan, and banks taken over by FSC-assigned officials, or ordered to suspend or wind up business or undergo liquidation.

These Standards will be in force on January 1, 2015.