The FSC recently imposed sanctions on Taichung Commercial Bank after discovering that the bank had adopted improper policies on the leasing of aircraft and high-priced company vehicles, had failed to properly establish and sufficiently implement internal controls for tender invitations, had failed to follow internal rules in evaluating business dealings with loan customers. These shortcomings indicate an inadequate establishment and execution of internal control systems within the bank, as well as a failure to effectively manage its subsidiaries These shortcomings showed that the bank had violated Article 45-1, paragraph 1 of the Banking Act, and also constituted a likely hindrance to sound operations. The FSC imposed an administrative fine of NT$12 million under Article 129, subparagraph 7 of the "Banking Act," issued an official reprimand in accordance with Article 61-1, paragraph 1 of the "Banking Act," and in accordance with subparagraph 7 under that same paragraph the FSC also ordered that chairperson Wang be suspended from his duties for three months.