FSC Taiwan Makes Announcements for Banking Sector

As part of the recent updates, FSC Taiwan:

• announced amendments on measures for the issuance of corporate bonds by financial holding companies. FSC Taiwan proposed amendments to improve the flexibility and efficiency of the use of funds by financial holding companies by adjusting the application and approval procedures for the issuance of corporate bonds by financial holding companies. As per the revised application process, financial holding companies that issue ordinary corporate bonds and other corporate bonds that do not involve equity must submit an application to the Banking Bureau of the Financial Supervisory Commission. With regard to the approval procedures, the competent authority should approve the rejection within 12 business days, whereas after approval, the competent authority can issue corporate bonds in instalments within 2 years, thus simplifying the review process and improving the efficiency of issuance. These amendments came in effect from January 01, 2023.
• proposed to amend Articles 2 and 4 of the regulations governing issuance of NTD Bank debentures by foreign bank branches. FSC Taiwan states that the relaxation of regulations in the legislation is expected to assist foreign bank branches in Taiwan to provide credit and financing for sustainability and low-carbon transition economic activities and to encourage companies to implement carbon-reduction transition and facilitate achieving carbon reduction targets. The proposed amendments will be published in the respective Gazette.
• announced amendment to Article 18 of the regulations governing foreign bank branches and representative offices to set a suitable increase of the credit extension and investment capacity of foreign bank branches in Taiwan based on the source of fund of their head offices and other overseas branches. FSC states that the amendment of the regulations is intended to address the practice of multinational banking. For multinational banks with regional head offices or fund management centers, the amendment provides flexibility and efficiency of funding for a foreign bank branch in Taiwan while meeting risk management requirements.
• approved the application of Cooperative Treasury Commercial Bank for the establishment of a Singapore branch. The Cooperative Treasury Commercial Bank plans to set up a Singapore branch to combine the existing southbound base of bank, integrate financing and cash flow services in the region, and improve the integrity of the Southeast Asian layout of the bank.

Related Links (in Chinese)

• Press Release on Issuance of Corporate Bonds
• Measures on Issuance of Corporate Bonds
• Issuance of Bank Debentures by Foreign Bank Branches
• Amendment to Rules Governing Foreign Bank Branches
• Press Release on Cooperative Treasury Commercial Bank

Keywords: Asia Pacific, Taiwan, Banking, Corporate Bonds, Foreign Bank Branches, Lending, Credit Risk, Sustainable Finance, Cooperative Treasury Commercial Bank, FSC Taiwan