FSC Taiwan Updates Capital Rules and DSIB List, Announces Stress Tests
FSC Taiwan issued three regulatory updates for banks, with one key update addressing amendments to the calculation of capital requirements for credit risk, in line with the Basel Committee standards. The amendments relate to the determination of risk-weights for commercial and residential real estate; the authority also updated a reporting form incorporating the regulatory changes. The second update covers announcement on the specifics of the "2021 Supervisory Stress Test" for domestic banks, the results for which are expected before the end of April 2021; this stress test will introduce an operational risk stress scenario for the first time. As part of the third announcement, FSC Taiwan designated the First Commercial Bank as the sixth domestic systematically important bank (DSIB) in Taiwan. The other DSIBs are China Trust Commercial Bank, Cathay United Commercial Bank, Taipei Fubon Commercial Bank, Mega International Commercial Bank, and Cooperative Bank Commercial Bank.
Related Links (in Chinese)
- Press Release on Revisions to Capital Calculations
- Revisions to Capital Calculations
- Press Release on Supervisory Stress Test
- Press Release on DSIB Designation
Keywords: Asia Pacific, Taiwan, Banking, Regulatory Capital, Basel, Credit Risk, Stress Testing, COVID-19, D-SIBs, Systemic Risk, Reporting, FSC Taiwan
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