FSC Taiwan Grants License to Internet-Only Banks in Taiwan
FSC Taiwan has granted a banking license to LINE Bank in February 2021. LINE Bank is the second internet-only bank to obtain a banking license in Taiwan. In December 2020, FSC Taiwan had granted the banking license to Rakuten International Commercial Bank, which was the first internet-only bank to obtain the banking license in Taiwan. Going forward, FSC Taiwan will collaborate closely with the Central Bank and Central Deposit Insurance Corporation to strengthen supervision of various aspects of the operational risk management framework of internet-only banks, including liquidity risk monitoring, credit risk management, reputation risk management, and cyber security risk control. Internet–only banks will be also required to implement sound corporate governance and consumer protection.
In addition, FSC Taiwan has approved applications of six banks to cooperate with a third-party service provider—that is, Taiwan Depository and Clearing Corporation—in conducting Phase 2 on customer information inquiries of the Open Banking Initiative of Taiwan. These banks are Hua Nan Commercial Bank, Yuanta Commercial Bank, CTBC Bank, Mega International Commercial Bank, First Commercial Bank, and Cathay United Bank. FSC Taiwan has also approved an application by the Far Eastern International Bank to conduct Phase 2 of Open Banking Initiative in cooperation with a telecom operator, also acting as a third-party service provider. A consumer with internet banking or mobile banking account services at any of the aforementioned seven banks will be able to use an app issued by the said third-party service provider to apply for open banking services.
Related Links
- Press Release on Second Banking License (in Chinese)
- Press Release on First Banking License
- Press Release on Open Banking Initiative
Keywords: Asia Pacific, Taiwan, Banking, Licensing, Open Banking, Line Bank, Rakuten, Digital Banks, FSC Taiwan
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