FSC Taiwan Issues Multiple Regulatory Updates for Banks
The Financial Supervisory Commission of Taiwan (FSC Taiwan) issued a rule on risk-weights of real estate loans, a rule on capital calculation reporting, and a statement on the virtual currency platform operators' compliance with the Money Laundering Prevention Act.
As part of the recent updates, FSC Taiwan:
- issued an Order to adjust risk-weights applicable to the real estate mortgage loans by domestic banks, with the Order entering into force on February 18, 2022. The Order is in reference to the standardized approach for credit risk. The Order stipulates, among others, that mortgage loans for idle land in industrial zones shall be subject to 200% of the risk-weight and, in a commercial area too, the risk-weight of 200% shall apply. The Order also stipulates certain requirements for provisioning of problem loans.
- announced to amend the "description and forms for the calculation method of bank's own capital and risk assets" under Part VII of calculation table of bank's own capital and risky assets. The amendment came into effect on February 18, 2022.
- reminded the public to pay attention to the risks of virtual assets, also informing that 18 virtual currency platform operators have submitted declarations of compliance with the Money Laundering Prevention Act. FSC Taiwan has reviewed the documents and materials submitted by the operators and announced the list of operators that have completed the declaration process. The Commission also called on the operators that set up bitcoin vending machines to submit a statement of compliance with the Money Laundering Prevention Act.
Related Links (in Chinese)
- Press Release on Mortgage Loans Order
- Order on Risk-Weights on Mortgage Loans
- Order on Capital Calculation by Banks
- Press Release on Virtual Assets
Keywords: Asia Pacific, Taiwan, Banking, Reporting, Credit Risk, Regulatory Capital, Basel, Risk Weighted Assets, Mortgage Loans, Lending, Own Funds, Virtual Assets, AML CFT, ML TF Risk, Standardized Approach, Crypto-Assets, FSC Taiwan
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