The Banking Industry (Policy Business
The Banking Industry (Policy Requirements)
Practices to be corrected in the banking industry are as follows:
1. Bank policies relating to information disclosure of matured time
The failure for banks to notify depositors of policies relating to matured time
deposits or of time deposits reaching maturity have caused depositors
unnecessary losses. The Fair Trade Commission, after inviting relevant
government agencies for consulations and made a decision at the 168th
Commissioners* Meeting that in order to maintain transparency of business
transactions, banks are required to clearly specify in contracts or similar
written documents of handling terms and conditions of unclaimed matured
time deposits. This information will assist the depositor in making the relevant
choices for handling the matured funds. Banks are required to implement this
revision before March 1, 1995. Failure to comply is punishable with violation
of Article 24 of the Fair Trade Law.
2. The disclosure of bank*s minimum credit requirement for checking
The failure for banks to disclose minimum credit requirements for checking
accounts is prevalent in the industry. The Fair Trade Commission invited
relevant government agencies and organizations for consulatations. A decision
was made at the 178th Commissioners* Meeting that in cases where banks
require checking account depositors to a maintain minimum balance in the
account, the following revisions are to be added to bank contracts and are to
be implemented by March 1, 1995. Failure to comply is punishable with
violation of Article 24 of the Fair Trade Law.
i. Required minimum balance, notification for any adjustments and the relevant effective dates.
ii. The consequences of not meeting the minimum balance requirement such as fees for failure of
maintaining minimum balance or the suspension of writing checks.