Yuanta Commercial Bank recently was found deficiencies in handling the collection of bad debts, which had failed to establish a system of internal checks-and-balances or a proper system for notifications and confirmations, and it was not carefully implementing internal controls. Accordingly, the FSC concluded that the bank failed to establish or properly implement related internal control system, thus violating the provisions in Article 45-1, paragraph 1 of the "Banking Act" and Article 3 paragraph 1 and Article 8, paragraphs 1 and 3 of the "Implementation Rules of Internal Audit and Internal Control System of Financial Holding Companies and Banking Industries," established based on the authorization of said provisions of the "Banking Act." The FSC imposed an administrative fine of NT$4 million upon the Bank in accordance with Article 129, subparagraph 7 of the "Banking Act."