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Annual Report 2015
-85-
Financial liabilities that are offset, or can be settled under agreements of net settlement master netting arrangements or similar arrangements
Description
Gross amounts
of recognised
financial
liabilities
(a)
Gross amounts of recognised
financial assets offset in the
balance sheet
(b)
Net amounts of financial
liabilities presented in
the balance sheet
(c)=(a)-(b)
Not offset in the balance sheet(d)
Net amount
(e)=(c)-(d)
Financial
instruments
(Note)
Cash collateral
received
Derivative instruments $
7,425,472 $
- $
7,425,472 $
649,138 $
44,464 $ 6,731,870
Repurchase agreement
49,444,677
-
49,444,677
49,444,677
-
-
Total
$
56,870,149 $
- $
56,870,149 $
50,093,815 $
44,464 $ 6,731,870
(Note) Including net settlement master netting arrangements and non-cash collaterals.
9.
CAPITAL MANAGEMENT
(1)
Objective of capital management
A.
The Bank and its subsidiaries’ qualifying self-owned capital should meet the regulatory requirements and meet the minimum regulated
capital adequacy ratio. This is the basic objective of capital management of the Bank and its subsidiaries. The calculation and provision
of qualifying self-owned capital and regulated capital shall follow the regulations of the competent authority.
B. In order to have adequate capital to take various risks, the Bank and its subsidiaries shall assess the required capital with consideration of
the risk portfolio it faces and the risk characteristics, and manages risk through capital allocation to realize optimum utilization of capital
allocation.
(2)
Capital management procedures
A. Following the “Regulations Governing the Capital Adequacy Ratio of Banks” of the Financial Supervisory Commission, the Bank
calculates capital adequacy ratio on a consolidated basis and reports this information regularly.
B. The calculation of capital adequacy ratio of subsidiaries shall follow the regulations of regulatory authorities; if without regulations,
capital adequacy ratio is computed as net of qualifying self-own capital divided by regulated capital.
(3)
Capital adequacy ratio
Capital adequacy shown in the following table was calculated in accordance with “Regulations Governing the Capital Adequacy Ratio of
Banks” effective on December 31, 2015 and 2014.
UNIT
：
In NT Thousand Dollars, %
Annual
Items
December 31, 2015
December 31, 2014
Self-owned capital
Capital of Common equity
$
244,583,282 $
207,734,290
Other Tier 1 Capital
-
-
Tier 2 Capital, net
44,734,116
45,401,452
Self-owned capital, net
289,317,398
253,135,742
Total risk -weighted assets
(Note 1)
Credit risk
Standardized Approach
2,033,605,160
1,983,041,002
Internal Ratings-Based Approach
-
-
Asset securitization
1,375,313
4,171,285
Operation risk
Basic Indicator Approach
89,086,413
85,933,263
Standardized Approach / Alternative
Standardized Approach
-
-
Advanced Measurement Approaches
-
-
Market risk
Standardized Approach
46,141,363
45,428,813
Internal Models Approach
-
-
Total risk-weighted assets
2,170,208,249
2,118,574,363
Capital adequacy ratio (Note 2)
13.33%
11.95%
Total risk assets based Capital of Common equity, net Ratio
11.27%
9.81%
Total risk assets based Tier 1 Capital, net Ratio
11.27%
9.81%
Leverage ratio
7.02%
4.17%
Note 1: The self-owned capital, risk-weighted assets and exposures amount in the table above should be filled in accordance with “Regulations
Governing the Capital Adequacy Ratio of Banks” and “calculation method and table of self-owned capital and risk-weighted assets”.
Note 2: Current and prior year's capital adequacy ratio should be disclosed in the annual reports. In addition to current and prior year's capital adequacy,
capital adequacy ratio at the end of prior year should be disclosed in the semi-annual reports.
Note 3: The relevant formulas are as follows:
1. Self-owned capital = Tier 1 Capital of Common equity, net
＋
Other Tier 1 Capital, net
＋
Tier 2 Capital, net
2. Total risk-weighted assets = credit risk-weighted assets + (operation risk + market risk) * 12.5
3. Capital adequacy ratio = Self-owned capital / Total risk-weighted assets
4. Total risk assets based Tier 1 Capital of Common equity, net Ratio
＝
Tier 1 Capital of Common equity, net / Total risk-weighted assets
5. Total risk assets based Tier 1 Capital, net Ratio
＝
(Tier 1 Capital of Common equity, net + Other Tier 1 Capital, net) / Total risk-weighted
assets
6. Gearing ratio = Tier 1 capital/ exposures amount
Note 4: For 1st quarter and 3rd quarter financial reports, the table of capital adequacy ratio is not required to be disclosed.