FSC Taiwan Fines Cathay United Bank, Extends Payment Deferrals
The Financial Supervisory Commission of Taiwan (FSC Taiwan) imposed sanctions on Cathay United Bank of China due to a failure to properly establish an internal control system as well as lack of an appropriate emergency response mechanism. Additionally, FSC Taiwan decided to extend the timeline for COVID-19 related payment deferrals from the end of June 2022 to the end of June 2023.
The extended timeline for payment deferrals is applicable to debtors who continue to face financial disruptions due to COVID-19 pandemic. The relief measure applies to personal financial products including housing loans, car loans, consumer loans, credit card payments, among others. Borrowers and credit card holders can apply for a deferral of 3 to 6 months on the repayment of outstanding debt. Default penalties or default interest will be exempt during the deferred period.
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Keywords: Asia Pacific, Taiwan, Banking, Internal Control, Operational Risk, Covid-19, Payment Deferrals, Basel, Credit Risk, Lending, Loan Repayment, Cathay United Bank, D-SIB, FSC Taiwan
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