The Financial Supervisory Commission of Taiwan (FSC Taiwan) issued the draft amendments to the regulations governing internal operating systems and procedures for outsourcing the operations of financial institutions, a plan to launch a Green Fintech campaign, and a statement aimed at improving the financing issues of the real estate market.
Draft Amendments to Outsourcing Regulations. FSC Taiwan considers that it is necessary to adjust the relevant management aspects for outsourcing based on risk-based principles, as most international regulations on outsourcing supervision are moving toward the risk-based approach. Thus, FSC Taiwan proposed revisions to the outsourcing regulations with the aim to strengthen the operational resilience of financial institutions, promote digital transformation, and enhance supervisory efficiency by protecting customer rights and interests. The proposed amendments will be published in the official Gazette, with the comment period ending in 60 days after the date of the public announcement. In addition, FSC will publish a general description, along with a comparison chart of revised Articles, on its website. These proposed amendments will enable financial institutions to:
- Establish a risk-based outsourcing management framework
- Strengthen financial institutions’ ability to respond to emergency events
- Simplify the outsourcing application procedures and documents
- Adopt risk-based supervision and adjust the scope of cross-border and cloud outsourcing applications
- Establish a comprehensive reporting mechanism for outsourcing
- Strengthen supervisory measures of the competent authority
Green Fintech campaign. FSC Taiwan intends to launch Green Fintech campaign this year to spur development of the Green Fintech ecosystem in Taiwan. The scope of Green Fintech will include green digital payment and account solutions, green digital investment solutions; digital environmental, social, and corporate governance (ESG) data collection and analytics solutions; green insurtech solutions; green lending solutions; green digital asset solutions; and green regtech solutions. In addition, FSC plans to launch a series of Green Fintech activities, including domestic and international conferences, business matching and proof-of-concept activities, and events to announce significant achievements.
Statement on real estate financing. FSC Taiwan urges banks to consider moderate and balanced development of the region, when granting credit, and to properly allocate credit lines. Banks are urged to pay attention to the appropriateness of the area when implementing the regulations on the control of the total amount of credit. Banks should deploy funds in a balanced manner, make reasonable assessments based on business transactions, and properly allocate loan quotas between regions while taking risk control into consideration.
Related Links (in Chinese)
- FSC on Amendments to Outsourcing Regulations
- Press Release on Green Fintech Campaign
- Statement on Real Estate Financing
Keywords: Asia Pacific, Taiwan, Banking, ESG, Fintech, Reporting, Outsourcing, Credit Risk, Real Estate Lending, Sustainable Finance, Regtech, Risk-Based Approach, Operational Resilience, Green Finance, Commercial Real Estate FSC Taiwan
Hasan leads Moody’s Analytics ESG methodology development. He is expert on carbon transition, nature related risks and is a guest lecturer at ESSEC Business school on sustainable finance.
Previous ArticleEU to Conduct One-Off Scenario Analysis to Assess Transition Risk
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.