1.In view of the fact that a number of banks and other financial
organisations incorporated in Taiwan or France have operations
in both jurisdictions, the Commission bancaire (hereafter the
"CB") and the Financial Supervisory Commission (hereafter the
"FSC") hereby agree to the provisions set out in this
agreement in order to establish an arrangement for the
collection and sharing of information, in particular through
on site inspections, whose aim is to facilitate the
performance of their tasks, meet the highest international
standards for effective banking supervision and promote the
safe and sound functioning of banks and other financial
organisations in their jurisdictions.

2.The Basel Committee on Banking Supervision has issued Core
Principles for Effective Banking Supervision (hereafter the
"Core Principles"), in particular Core Principles 23, 24 and
25 regarding supervision of cross-border establishments.

3. The overall aim of the present agreement is to improve the
strength of the financial systems of the Authorities'
jurisdictions in accordance with the above mentioned Core
Principles, thereby helping to maintain stability and
confidence in the domestic and international financial
systems and reducing any risk of loss to depositors and
creditors.

Article I. - Legislation and competent authorities
1.The relevant French Law for the purposes of this
agreement is the Code mon?taire et financier
(Code mon?taire et financier, annexe?
l'ordonnance n ° 2000-1223 du 14 d?cembre 2000,
hereafter referred to as the "Monetary and
Financial Code"), as amended, in particular
Articles L.613-13 and seq.
2.The relevant Taiwanese law for the purposes of
this agreement is the Act Governing the
Establishment and Organization of Financial
Supervisory Commission (hereafter referred to as
the " FSC Act ") and the Banking Act (hereafter
referred to as the " Banking Act "), in
particular Article 19.
3.The FSC has been vested by the Act Governing the
Establishment and Organization of Financial
Supervisory Commission with the task of
supervising credit institutions, banks and some
other financial undertakings, insurance
companies, and securities and futures
corporations located within the jurisdiction of
Taiwan R.O.C (hereafter Taiwan). The Banking
Bureau, which rules in particular on application
for licenses by banks, and the Financial
Examination Bureau, which takes charge of
examining financial institutions, both will get
directly in touch with the CB with respect to
matters falling within the scope of their
competences.
4.The CB has been vested by the Monetary and
Financial Code with the task of supervising
credit institutions, investments firms (except
portfolio management firms), members of regulated
markets, participants to clearing houses and some
other financial undertakings located within the
jurisdiction of the French Republic (hereafter
"France"), including French overseas territories.
The Comit? des?tablissements de cr?dit et des
entreprises d'investissement (Committee for
Credit Institutions & Investment Firms), which
rules in particular on applications for licenses
by credit institutions and investments firms and
on equity participations in French credit
institutions or investment firms, will get
directly in touch with the FSC with respect to
matters falling within the scope of its
competences.


Article II - Definitions
For the purposes of this Agreement:
1."Authority" means the CB or the FSC.
2."laws" mean those set out in Article I,
paragraphs 1 and 2.
3."supervised institution" means an institution
subject to the supervision or control of the CB
（FSC）.
4."branch" means an organisational unit of a
supervised institution's head office incorporated
in France (Taiwan ).
5."subsidiary" means a separate legal entity
incorporated in one country which is controlled
by a supervised institution incorporated in the
other country.
6."Affiliated company" means any legal entity that
belongs to the same group as a supervised
institution.
7."cross-border establishment" means an
establishment of a branch or a subsidiary of a
supervised institution incorporated in France
(Taiwan) which has been granted an authorisation
in Taiwan (France).
8."Home Authority" means the Authority located in
France (Taiwan), responsible for the supervision
on a consolidated basis of a supervised
institution.
9."Host Authority" means the Authority located in
Taiwan (France) in which a supervised institution
incorporated in France （Taiwan）has a branch,
subsidiary, representative office or affiliated
company.
Article III. - Mutual Assistance Concerning Sharing of
Supervisory Information between the Authorities
1.The CB and the FSC hereby recognise that closer
co-operation during the authorisation process
of a cross-border establishment as well as
sharing of information on an ongoing basis
would be mutually advantageous for the
Authorities for effective consolidated
supervision of supervised institutions.
2.A request for information pursuant to this
article shall be made in writing and addressed
to the relevant contact person (Article VI,
paragraph 12) of the disclosing Authority.
A request shall specify the following:
(a)the information sought by the requesting
Authority;
(b)a general description of the matter which is
the subject of the request and the purpose for
which the information is sought; and
(c)the desired time period for reply and, where
appropriate, the urgency thereof.
3.The Authority receiving a request shall
immediately acknowledge receipt, by mail, fax
or e-mail and, to the extent possible, specify
the considered time period to provide a written
response.
Sharing of information during the process of
authorisation
4.Regarding the process of authorisation of a
cross-border establishment, and without
prejudice to the competences in France of the
Comit? des?tablissements de cr?dit et des
entreprises d'investissement, upon request from
the Host Authority, the Home Authority
undertakes to notify the Host Authority:
(a)of any details concerning any establishment of
the supervised institution located within the
jurisdiction of the Home Authority, in
particular regarding its compliance with laws,
degree of administrative control and ability
to manage a cross-border establishment in an
orderly manner; and
(b)about any aspect of its laws in response to
any requests for information.
5.The Authorities agree that, without prejudice
to Article I.3 and I.4, when a supervised
institution within the jurisdiction of the Home
Authority proposes to set up a cross-border
establishment, the Host Authority shall seek
the opinion of the Home Authority (or obtain a
statement of "no-objection") before the
authorisation is granted.
Sharing of information for consolidated
supervision on an ongoing basis
6.As a general rule, any relevant information
should be shared in support of the objective to
facilitate and meet the requirements for
effective consolidated supervision of
supervised institutions operating in both
jurisdictions.
7.In accordance with paragraph 2 of this Article,
in the event of:
(a)a written request by the CB as Home Authority
which is responsible for carrying out the
consolidated supervision of any particular
supervised institution, the FSC as Host
Authority shall provide all relevant
information regarding that supervised
institution, including any office, branch,
subsidiary or affiliated company located
within the jurisdiction of the Host Authority;
(b)a written request by the FSC as Home Authority
which is responsible for carrying out the
consolidated supervision of any particular
supervised institution, the CB as Host
Authority shall provide all relevant
information regarding that supervised
institution, including any office, branch,
subsidiary or affiliated company located
within the jurisdiction of the Host Authority.
8.In considering such a request the Host
Authority should take into account at all times
that the Home Authority requires two principal
types of information: quantitative and
qualitative.
9.The Home Authority may notably request
quantitative information including:
i.any accounting or financial data relevant to
the supervised institution;
ii.any details concerning capital adequacy
ratios, large risks or lending limits
(including intra-group exposures), funding
and deposit concentrations.
10.The Home Authority may also require
information on qualitative aspects of the
business being undertaken by the branch,
subsidiary or affiliate. The Host Authority
may, in this regard provide information about
the following:
(a)any details as to the capability /
qualification / integrity of the directors and
senior management;
(b)the existence of risk control methods within
the supervised institution on a global /
worldwide basis as well as the ability to
manage the cross-border establishment and
effective local oversight of foreign
operations;
(c)the ability of the supervised institution to
carry out checks including internal audit
procedures and compliance with internal
controls; the quality of assets and levels of
concentration; the monitoring of the liquidity
of the institution; and if applicable,
specific local oversight when the foreign
activities of the institution have a higher
risk profile or when they differ from those
conducted in the home country;
(d)prevention of money laundering and struggle
against terrorism financing.
11.Whenever necessary, the CB (FSC) will transmit
to the FSC (CB) the information required for
the calculation of insurance premiums for the
French Deposit Guarantee Fund (Central Deposit
Insurance System).
Sharing of additional information at the
initiative of either the Home or Host Authority
12.Without prejudice to the procedures laid down
in the paragraphs above, each Authority will
use its best effort to notify and consult with
the other Authority if it becomes aware of any
information which, in its judgement, may
constitute a material supervisory concern that
could materially and adversely affect, from
the prudential viewpoint, the situation of a
supervised institution subject to supervision
by the other Authority.
13.For the purpose of the paragraph 12 above, the
CB shall provide the FSC with any relevant
information regarding any material supervisory
concern it may have:
(a)as Host Authority in respect of any of the
branches or subsidiaries in France of a
Taiwanese supervised institution; and
(b)as Home Authority in respect of any French
supervised institution having a subsidiary or
branch in Taiwan.
14.For the purpose of the paragraph 12 above, the
FSC shall provide the CB with any relevant
information regarding any material supervisory
concern it may have:
(a)as Host Authority in respect of any of the
branches or subsidiaries in Taiwan of a French
supervised institution; and
(b)as Home Authority in respect of any Taiwanese
supervised institution having a subsidiary or
branch in France.
15.When considering the obligation to provide
information concerning supervised institutions
in accordance with the paragraphs above, the
Host Authority will take into account all
relevant factors, including:
(a)whether the activities of the branch or
subsidiary are conducted in a manner which is
safe and sound;
(b)whether the branch or subsidiary has complied
with the relevant laws; any sanctions taken by
the Host Authority (not by other authorities),
whether or not such sanctions are being
subject to an appeal (not merely evidence of a
material violation of the law); enforcement of
claims against the branch or subsidiary (e.g.
for a default in payment of a periodic
contribution to deposit guarantee schemes or
similar mechanisms protecting depositors or
investors).
16.Before consequential action is taken by one
Authority on the sole basis of information
received from the other Authority, the former
will endeavour to consult the latter.
Urgency or crisis situations
17.Each authority recognises the unique
importance of full and open co-operation in
the event of a serious supervisory concern
that might lead to a crisis situation.
18.In addition to the procedures laid down in the
paragraphs above, in the event that there
exists a serious supervisory concern in the
judgement of the Authority concerned, the CB
will endeavour to notify the FSC and the FSC
will endeavour to notify the CB before
appropriate action is taken regarding the
serious supervisory concern.
19.When there is a need for expedited action,
requests for information under paragraph 2 may
be initiated in any form, including orally,
but shall be confirmed subsequently in
writing. The Authorities will endeavour to
provide information as quickly as possible in
such circumstances.
Article IV.- On-site Inspections in the Host Country
1.The FSC (CB) in its capacity as Host Authority
shall allow the CB (FSC) to carry out an on-site
inspection concerning any branch or subsidiary of
a supervised institution within its jurisdiction,
subject to the fulfilment of the following
formalities:
(a)except the reasonable notice without any
objection from Host Authority, notification is
provided to the relevant contact person at the
FSC (CB) by the Home Authority at least two
months before the envisaged date of the visit,
specifically regarding the purpose of the
inspection, its expected duration, the
institution(s) to be inspected and details of
the persons performing the inspection;
(b)the visit is not rejected under the conditions
set out in Article VI, paragraph 5 below.
2.Provided a request for an on-site inspection in
accordance with the provisions above is not
rejected, the Home Authority may carry out the
inspection in Taiwan (France). The Host
Supervisor has the right to have representatives
accompany any such on-site inspection. The
Secr?taire G?n?ral of the CB and the Chairperson
of FSC shall appoint one or more representatives
to accompany the Home Authority's representatives
in their inspection.
3.In the course of such an inspection, persons
taking part in the supervision or management of a
supervised institution, or employed by such an
institution or entity, should comply with the
requests of the Home Authority's representatives
and may not assert a duty of confidentiality or
professional secrecy as grounds for
nondisclosure.
4.The Host Authority shall endeavour to exercise
its statutory powers to ensure compliance with
the requests for information issued by the Home
Authority in the carrying out of inspections
pursuant to this agreement.
5.The results of the inspection shall be submitted
to the Host Authority for information. The
information on the results of the inspection may
provide a basis for further action, including
disciplinary proceedings, undertaken by the
Authority which initiated the request for the
on-site inspection. This shall be without
prejudice to the right of the FSC (CB) to
initiate a separate action, on the basis of the
report of inspection, for an alleged infringement
of Taiwanese (French) laws. \
6.Without prejudice of the competence of other
authorities, only the FSC may order sanctions
with regard to a branch or a subsidiary of a
supervised institution in Taiwan. Only the CB may
order sanctions with regard to a branch or a
subsidiary of a supervised institution in France.
Article V.- Confidentiality of the Information Shared Between
the Authorities / Professional Secrecy
1.Reports of examinations shall remain the property
of the Authority providing such a document.
2.The Authorities consider that any information
obtained in accordance with the provisions of this
agreement should remain confidential, except for
the purposes determined in the paragraph below. In
this regard it is recognised that members and
employees of the Authorities are bound by an
obligation to hold confidential the information
obtained in the course of their duties. No
provision of this agreement shall give rise to the
right on the part of any person, entity or
governmental authority other than the Authorities,
directly or indirectly, to obtain any information
or to challenge the execution of a request for
information under this agreement.
3.The Authority which makes a request may use the
information furnished pursuant to this agreement
solely:
(a)for the purposes stated in the request, including
ensuring compliance with, or enforcement of, any
laws and regulations specified in such a request;
or
(b)for purposes within the general framework of the
use stated in the request, including conducting a
civil or administrative enforcement proceeding,
assisting in a proceeding whose purpose is to
permit a subsequent criminal prosecution, or
conducting any investigation related to any
general charge applicable to the violation of the
provision stated in the request.
4.In the event of a request issued by a competent
official person, either in the course of a
criminal proceeding or of a court-ordered
winding-up of a supervised institution, or
pursuant to an order issued by a court in the
course of proceedings related to the discharge of
the carrying out by an Authority of its legal
tasks, for disclosure by an Authority of
information that originates from the other
Authority, the Authority to which the request has
been addressed shall notify the Authority that
originated the information of such a request and
shall seek, to the extent permitted by the laws of
the Authority to which the request has been
addressed, prior approval before disclosing this
information.
If an Authority is forced to testify in a
parliamentary investigation to disclose
confidential information received from the other
Authority, it shall consult with the later
Authority before disclosing such confidential
information. The Authority forced to disclose
confidential information shall advise the
requesting body if the Authority that originated
the information did not consent to sharing the
information and that a forced disclosure could
adversely affect the future transmission of
confidential information by foreign supervisory
authorities. It shall request that the information
be kept confidential by the requesting body.
In any other event of a request for disclosure by
an Authority of information that originates from
the other Authority, in particular when the
information relates to an individual client of a
supervised institution, the Authority to which the
request has been addressed shall seek and receive,
to the extent permitted by the laws of the
Authority that originated the information, prior
approval before disclosing this information.
5.In the event of a breach of the conditions set out
in Article V paragraph 4 above by an Authority,
the other Authority may suspend the execution of
co-operation under this agreement with immediate
effect. Such suspension shall affect neither the
obligation of confidentiality nor the content of
Article VI paragraph 10 of this agreement.
6.Each Authority shall keep confidential requests
made within the framework of this agreement, the
content of such requests, and any other matters
arising during the operation of this agreement,
including consultation between the Authorities.
Article VI. - General Provisions
1.Nothing in this agreement shall affect the
competence of the FSC under Taiwanese law and
supervisory practice or supersede, alter or
create any arrangement between the FSC and other
entities with respect to the sharing of
information.
Nothing in this agreement shall affect the
competence of the CB under French or European
Community law and supervisory practices or
supersede, alter or create any arrangement
between the CB and other entities with respect
to the sharing of information.
Mutual information on laws and regulations
2.The Authorities have exchanged documents
intended to inform each other of the laws
(including, where applicable, regulations and
procedures) governing the supervised
institutions in their respective jurisdictions.
3.The Authorities represent that they have
informed each other of the laws, regulations and
procedures governing the confidentiality of
information to be shared pursuant to this
agreement.
4.The Authorities acknowledge that this agreement
has been executed in accordance with the
applicable laws and regulations in France and in
Taiwan and is based on the representations made
and supporting materials exchanged by the
Authorities.
Impossibility of providing information or
assistance
5.The Authorities understand that the provision of
information or assistance to an Authority must
be refused by the other Authority when complying
with the request is likely to result in a
prejudice to sovereignty, security, essential
economic interests or public policy, or where
criminal proceedings have been initiated on the
same facts against the same persons, or where a
final decision to impose a sanction has been
given against such persons for the same facts.
Nothing in this agreement shall affect this
obligation.
Implementation of the agreement
6.This Agreement shall enter into force on the day
of its signing by the Authorities.
7.The provisions of this agreement may be amended
by the mutual written agreement of the
Authorities.
8.The Secr?taire G?n?ral of the CB and the
Chairperson of FSC may issue practical
arrangements regarding the method of
co-operation between the Authorities.
9.The Authorities shall consult each other in the
event of any changes in their respective laws or
in the event of any other difficulty which may
make it necessary to amend or interpret this
agreement.
10.The agreement will remain in effect for an
indefinite period from the date entered below.
Should an Authority consider that it can no
longer co-operate under the provisions of this
agreement, it will give notification to the
other Authority as soon as possible. In any
case, the duty of confidentiality referred to in
Article V of this agreement shall not terminate
with respect to any information disclosed.
11.Representatives of the CB and the FSC will meet
regularly to discuss supervisory developments
concerning supervised institutions maintaining
establishments in both Taiwan and France. Each
party will make every effort to encourage
continuous and informal contact between their
respective staff, particularly to provide the
other Authority with information on legislative
or regulatory provisions relevant to supervised
institutions. The FSC and the CB intend to
promote their cooperation by visits for
informational purposes and by short exchange of
staff for practical internships.
12.The FSC and the CB shall exchange lists of the
contact persons authorised to request and
provide information on behalf of the FSC and on
behalf of the CB pursuant to this agreement. The
list shall contain the following contact data:
the first name and surname, position (function),
e-mail address and telephone and fax numbers of
the authorized persons. On behalf of the FSC and
CB, persons other than those specified in the
manner stated in the preceding clauses may
request or provide information of a general
nature or information that has been officially
disclosed. The FSC and the CB shall inform each
other of any modifications to the list of
authorized persons without undue delay.

IN WITNESS WHEREOF, the Undersigned, being duly authorised, have
signed this agreement.

Done at ______ , in 6 exemplars, this __ of ___ 2005, in the
Chinese, French and English languages, each text being equally
authentic.


For the Financial Supervisory For the Commission bancaire
Commission
Chairperson of Governor of the Banque de France
Financial Supervisory Chairperson of the Commission
Commission bancaire
Jaw-Sheng Kong