What are the current main focuses at the Banking Bureau?
1、 Enhancement of Risk-Based Approach to Supervision:
(1) Regarding Basel III published by Basel Committee, the FSC will amend regulations about capital adequacy requirements
• Due to the strong emphasis that Basel III places on common equity ratio and tier I ratio, the FSC has asked domestic banks to adopt suitable long-term capital plans and dividend policies so that they will keep in line with the minimum capital requirements of Basel III and be better able to absorb shocks. The objective is to ensure the safety and soundness of Taiwan''s banking sector.
• The FSC will use the Basel III rules as reference in amending regulations such as "Regulations Governing the Capital Adequacy Ratio and Capital Category of Banks" and "illustrations and forms of computing capital and risk-weighted assets."
(2)Strengthening Banks’ Risk Management of The Real Estate Mortgage Loans：
• Reminding banks to strengthen the risk management of the real estate mortgage loans.
• Requiring the banks whose loans are highly centralized on the real estate mortgage loans to propose improvement plans.
2、 The Trading Relationship between Taiwan and China: 4 Chinese banks established representation office in Taiwan in recent years. The Banking Bureau will review their businesses in accordance of relevant policy, including:
(1) To coordinate with consultative process of the Economic Cooperation Framework Agreement (ECFA), the FSC will negotiate with Mainland China.
(2) Keep developing the trading relationship between Taiwan and China, The FSC is drafting the amendment of “Regulations Governing Financial Instituting Conducting Business between Taiwan and China”.
3、 Financial Consumer Protection: The FSC has completed the draft of "Financial Consumer Protection Act" and submitted it to the legislature to establish an independent, impartial, and professional financial dispute resolution body like the UK FOS and the Singapore FIDReC.
4、 The International financial reform: The international financial reform, OTC derivatives related central clearing and data repository issues, for example, are concerned to avoid regulatory arbitrage.