FSC Taiwan Revises Measures on Bank Capital Adequacy for D-SIBs

FSC Taiwan notified that the list of domestically systemically important banks remains the same in 2022 in comparison with 2021. FSC Taiwan has revised the administrative measures and regulations, which were issued in 2018 and are titled "Bank Capital Adequacy and Capital Level Management Measures." The regulator has formulated the "systematic important bank screening criteria and implementation requirements," which is used to calculate the systemic importance scores of domestic banks and designate domestically systemically important banks. As per the latest revised administrative measures, FSC Taiwan has postponed the implementation period of the strengthening measures for raising the 2% internal management capital requirement over 4 years from 2022 to 2025. FSC Taiwan states that the capital adequacy ratios of the six domestically systemically important banks are in compliance with the minimum capital requirements for the current year. FSC Taiwan and the Depository and Insurance Corporation have completed a review of the operational crisis response measures reported by the domestically systemically important banks and invited them to comply. In addition, domestically systemically important banks shall report the results of the second pillar stress test in 2022 (all meet the qualification standards for the two years). FSC Taiwan further expects the six domestically systemically important banks to take on more responsibilities and missions for financial stability and to comprehensively promote the improvement of financial industry operations in terms of business, behavior, and corporate governance stability and soundness.

Related Link (in Chinese): Press Release

Keywords: Asia Pacific, Taiwan, Banking, Basel, Regualtory Capital, D-SIBs, Stress Testing, Financial Stability, Systemic Risk, FSC Taiwan