Taishin FHC Corporate Social Responsibility Report 2019

132 Stakeholder Engagement ● Relief and Revitalization Plan in Response to COVID-19 Through the responses described above, individuals and SMEs may understand the wide array of financial assistance measures available to them. The official website of Taishin Bank offer s further details on those solutions: Competent authority, customers, media Stakeholder Type Concerned Issues Time of Query Taishin's Response Reporting to competent authority, e-mail/physical mail, customer service call, website and press release How to financially relief our customers? Q1 in 2020 The COVID-19 epidemic continues to spread around the world, and Taishin Financial Holdings is actively responding and cooperating with the government's relief plans. At this stage, the group’s subsidiary Taishin Bank endeavors to assist small and medium-sized enterprises and individuals affected by the COVID-19 epidemic. We actively cooperate with the relief programs of various ministries and agencies and provide customers with such services as extension of existing loans, revolving operational funds, and revitalization of capital loans. In particular, we work with the Small and Medium Enterprise Credit Guarantee Fund of Taiwan (Taiwan SMEG) to issue “Relief Loans” through Taishin Bank as part of a relief plan for small and medi- um-sized enterprises. If they meet the requirements, new customers can apply for a maximum of TWD 15 million. Existing customers are also eligible to increase their loans by TWD 15 million. Revolving operational funds will have a grace period of up to six months, which will greatly reduce the operating pressure on enter- prises. Micro-enterprises affected by the corona epidemic may also apply for the “Relief Loan” program. New customers may apply for working capital of TWD 300,000 to TWD 10 million, with preferential handling fees, extended loan periods, longer grace periods, and other benefits. Existing customers are also welcome to apply for extensions, during which only interest needs to be paid and the first-year guarantee handling fee is waived. Customers affected by the COVID-19 epidemic that are unable to repay their loans on time may apply with our bank for interest rate deductions, deferred payment and extensions on their housing loans, car loans and credit loans. Credit card holders may also apply for deferred payment of their card fees and be exempted from penal- ty and revolving interest. Moreover, to thank frontline medical staff for their service, Taishin Bank also offers a number of thoughtful services and relief packages. Individuals employed in healthcare, pharmacy and epidem- ic-related occupations, are eligible for house loans, car loans, and credit loans with preferential handling fees. Upon presentation of their medical staff ID during the preferential program period, Taishin credit card holders may also enjoy a free spa treatments under the “Healthcare Staff Pressure Relief Program” at well-known spa centers in order to relieve the stress built up through working under high pressure for a prolonged period of time. Existing mortgage customers (including their spouses and first-degree relatives) that have been tested positive for COVID-19 are eligible for mortgage loan increases and loan term extensions with preferential exemption from processing fees. Moreover, to thank the hardworking epidemic prevention personnel for their service, the group’s subsidiary Taishin D.A Finance Co., Ltd. healthcare personnel at medical institutions and designated corona prevention taxicab drivers are eligible for new car financing and lease services with a waiver of pre-delivery car-tuning service fees. Taishin employees also participate in the volunteer services of the Taishin Charity Foundation, by caring for social welfare groups through phone calls, assisting with the collection and distribution of daily necessities and epidemic prevention materials to those in need. Amid this severe epidemic, we hope to spread our care across Taiwan. Presently, the epidemic in Taiwan is still under control, and the world is actively developing drugs to respond to this epidemic. Taishin continuously monitors the development of the epidemic and its impact on our dear customers. We will maintain flexibility in credit issuance and lending while upholding our stable operating principles as we stand by our customers through this epidemic. After the epidemic eases down, transportation, travel, tourism, hotels, restaurants and bars affected by the epidemic will gradually improve, and the demand for capital will once again increase. This is expected to drive the growth of our lending business and our profits. Revised internal standards and rules to strengthen the management principles of our control mechanisms (e.g.: we terminated and redrafted control mechanisms such as “Identity Confirmation Mechanism for Walk-in Customers” and the “Declaration of Out-of-Bank Services”, etc.) We strengthened management and control – From 2019 to 2020, our monitoring and management methods were improved on the system level (reporting) and the mecha- nism level. (1) System level: reporting (2 items in total) From March 2019, new monitoring reports were added, and branch supervisors regularly reviewed and strengthened the management of inbound and outbound funds from deposit accounts by our financial advisors to identify any anomalous situations and enable early warnings to be issued as needed. Starting from January 2020, financial advisors’ monitoring reports of account transactions of specific amounts within a specific time frame are discussed by the financial advisors and their supervisors, and the management unit will review those reports one by one as well. (2) Mechanism level (3 items in total) Since January 2019, we have increased unannounced cross-branch inspections to strengthen customer management and control and prevent improper possession of customer seals and blank documents. If an anomalous situation is found, the management unit will punish the staff in breach under the relevant company rules and industry regulations. In November 2019, designated training and leave review for new financial advisors was added. Without advance warning, designate the wealth managemersto attend external training (or order them to take leave), and then check their desk drawers; or, during their external training or leave, have the branch supervisor check with customers to make sure the status of assets to enhance the internal control through the random check. We have set up a mechanism for regularly sending out “important notifications on customer’s rights and interests” through our e-newsletter mechanism in order to safeguard customers’ rights and interests and protect account security.