R.O.C. Bills Finance Association was established on June 18, 2002, and merged with The Taipei Bills Finance Association (TBFA) (established in 1996), in September 2002. The R.O.C. Bills Finance Association’s aims are to assist the government in implementing monetary policies, to prevent money laundering and terrorist financing, to develop the money market, to coordinate industry relations, and to advance business interests for all the members.

Domestic finance was based on conventional state-run banks before 1971. Foreign exchange deposits were accumulated rapidly and monetary supplies were increased substantially along with economic development and the switch from importing business to exporting expansion; therefore, the problem of inflation surfaced. Mr. D.C. Liu and the other five academicians suggested having a money market established in 1974, urged having money supplies controlled for price stabilization, and promoted improving fund efficiency and developing a liberalized interest rate; moreover, the Central Bank of China could have financial adjustments made in the money market.

“Rules Governing Short-term Bills Firms” was published in December 1975. The Bank of Taiwan, International Commercial Bank of China, and Chiaotung Bank worked to have Chung Hsing Bills Finance Corp., International Bills Finance Corp., and China Bills Finance Corp. incorporated. Before the deregulations of the bills finance market, Taiwan’s three oldest bills finance companies had established the Bills Finance Association of Taipei and it was renamed “R.O.C. Bills Finance Association” later. The government opened up the bills finance business to allow formation of new bills finance companies in two progressive stages beginning in May 1992. In the first step, short-term bills brokerage and trade business was made available to banks. “Regulations Governing Bills Business” was published and enforced in October 1993, for the banks with bills business and bills finance companies. “Regulations Governing Bills Business” was amended as “Regulations Governing Bills Firms” in August 1994 and with the regulations of bills finance organization included. In the second step, short-term bills certification and underwriting business was made available to banks in 1995; also, Treasury bond trade and brokerage business were made available to bills finance company. The “Regulations Governing Bills Firms” was amended in 1995 to allow bills firms to expand the scope of their business and arrange transfer investment. Moreover, in response to the rapid development of money markets and the substantiation of bills firms monitoring and management, “Regulations Governing Bills Finance” was published in 2001 and the legal status of the money market business was established officially.

All bills firms and financial institutions that have got permission to engage in bills finance business are the members of R.O.C. Bills Finance Association. R.O.C. Bills Finance Association was organized in accordance with Commercial Association Act and related law. Each bills firm has representative delegated to attend conventions periodically and with the Executive Council organized with seventeen members and the Board of Supervisors organized with five supervisors. Seven Committees were organized to study relevant businesses: “Bills Committee,” “Bond Committee,” “Credit Committee,” “Accounting & Risk Control Committee,” “Information Technology Committee,”“ Business Development Committee ,”and “Regulations Committee”.

R.O.C. Bills Finance Association plays the role of bridging government authorities and market participants for the following missions and functions: assisting the government in promulgating financial policies; studying and making recommendations in regards to rules and regulations on bills finance industry; safeguarding the legal rights of members and mediating business disputes among members; promoting business of bills finance industry; regulating business guidelines of mutual concerns; publishing data and information on the money marketing, conducting programs of counseling, education, social gathering, research, and charity; exchanging information with domestic and foreign concerns as well as enhancing contacts with international community; managing projects consigned by government or other organizations; and handling issues of mutual interests to members and other matters stipulated by the law.