FSC Taiwan Sets Out Provisions on Information Disclosure by Banks
FSC Taiwan published provisions on disclosure of information related to capital adequacy and risk management of domestic banks. Also published were the disclosure forms (Annex I) and questions and answers (Q&As) on the disclosure of bank capital adequacy and risk management information (Annex II). The Decree on these provisions becomes effective from June 30, 2020. In addition, FSC Taiwan published amendments to Appendix 2 of the "Instructions and Forms for the Calculation Method of Liquidity Coverage Ratio (LCR)." The amendments became effective immediately on publication. Appendix 2 details the instructions for operating deposit calculation.
Domestic banks are required to disclose relevant information on capital adequacy and risk management. Each bank shall set up a "Capital Adequacy and Risk Management Zone" on its website to disclose the qualitative and quantitative information, which shall be retained for at least one year (Disclosure Form Annex I). Qualitative information covers the scope of calculation of the consolidated capital adequacy ratio, capital adequacy management notes, capital structure tool description, and risk management overview. Qualitative information also includes explanation on the difference between accounting and statutory exposures, credit risk (including securitization), counterparty credit risk, operational risk, market risk, interest rate risk in banking book, liquidity risk, and risk management system. Quantitative information covers capital adequacy ratio and capital structure, leverage ratio, liquidity coverage ratio, net stable capital ratio, and difference between the key indicators. Banks shall disclose relevant information of the previous year by the end of March each year. Banks shall formulate a policy for disclosure of information approved by the board of directors and the policy content shall include internal control and execution procedures for disclosure of information.
Related Links (in Chinese)
Effective Date: June 30, 2020/July 02, 2020
Keywords: Asia Pacific, Taiwan, Banking, Regulatory Capital, Disclosure, Q&A, Credit Risk, Market Risk, Operational Risk, Liquidity Risk, LCR, NSFR, Basel, FSC Taiwan
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
BCBS Report Examines Progress on Adoption of Basel III FrameworkRelated Articles
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.