Featured Product

    FSC Taiwan Sets Out Provisions on Information Disclosure by Banks

    July 06, 2020

    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
    Related Articles
    News

    PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK

    PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.

    April 15, 2021 WebPage Regulatory News
    News

    EBA Finalizes Standards on Methods of Prudential Consolidation

    EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).

    April 15, 2021 WebPage Regulatory News
    News

    EBA Updates List of Other Systemically Important Institutions in EU

    EBA updated the list of other systemically important institutions (O-SIIs) in EU.

    April 15, 2021 WebPage Regulatory News
    News

    BCBS Report Concludes Basel Risk Categories Can Capture Climate Risks

    BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.

    April 14, 2021 WebPage Regulatory News
    News

    UK Authorities Welcome FSB Review of their Remuneration Regime

    UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.

    April 14, 2021 WebPage Regulatory News
    News

    PRA and FCA Letter on Addressing Risks from Use of Deposit Aggregators

    PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.

    April 14, 2021 WebPage Regulatory News
    News

    MFSA to Amend Banking Act and Rules in Coming Months to Transpose CRD5

    MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.

    April 14, 2021 WebPage Regulatory News
    News

    EC Delegated Regulation on Specialized Lending Exposures Under CRR

    EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.

    April 14, 2021 WebPage Regulatory News
    News

    OSFI Proposes to Enhance Assurance Expectations for Basel Returns

    OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.

    April 13, 2021 WebPage Regulatory News
    News

    ECB Issues Results of Benchmarking Analysis of Recovery Plans of Banks

    ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.

    April 13, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6858