FSC Announces 2021 Domestic Systemically Important Banks
2021-11-25
Press Release
November 25, 2021
FSC Announces 2021 Domestic Systemically Important Banks
The Financial Supervisory Commission (FSC) stated that the list of domestic systemically important banks (D-SIBs) for 2021 remains the same as that in 2020 with six banks including CTBC Bank, Cathay United Bank, Taipei Fubon Commercial Bank, Mega International Commercial Bank, Taiwan Cooperative Bank, and First Commercial Bank.
To ensure the stability of the banking system to support the development of real economy, as well as enhance the risk tolerance of systemically important banks in Taiwan to reduce the impact of their business risks toward the financial system, the FSC had consulted with the Central Bank, Ministry of Finance, and Central Deposit Insurance Corporation (CDIC) to finalize the designation framework of D-SIBs and enhanced supervision measures. The FSC amended the “Regulations Governing the Capital Adequacy and Capital Category of Banks” and issued the “Directions governing the identifying indicators and requirements for domestic systemically important banks” in December 2019. Under these regulations, the FSC designated five banks as 2019 D-SIBs and added First Commercial Bank as 2020 D-SIBs.
According to the regulations above, banks designated as D-SIBs must meet the 2% additional regulatory capital requirement and the 2% additional internal capital requirement before each year-end of the four years equally, report the “Contingent plan for the business crisis” to the competent authority, and pass the two-year scenario stress test each year, starting from the year next to that of the designated date. However, to respond to the impact of the Coronavirus disease 2019 (Convid-19) outbreak and to enhance the financial intermediary functions of banks to support the real economy, the FSC has amended related regulations to defer the implementation of the 2% additional internal capital requirement to allow D-SIBs to meet the measures from 2022 to 2025. Besides, the timeline for D-SIBs firstly reporting “Contingent plan for the business crisis” was also deferred to the end of August 2021.
The FSC states that the capital adequacy ratios of D-SIBs currently meet the minimum capital requirements for 2021, and they have reported the “Contingent plan for the business crisis” to the FSC and the CDIC. In addition, the results of the “2021 supervisory stress tests” that D-SIBs conducted all met the minimum requirement.
D-SIBs are leading banks in financial market. The FSC hopes that D-SIBs can take more responsibilities and missions for financial stability and comprehensively improve the stability and soundness of finance industry operation in business, behavior, and corporate governance.
Contact unit: Legal Affairs Division, Banking Bureau
Tel: +886 (2) 8968-9650
If you have any questions, please send an E-mail to https://fscmail.fsc.gov.tw
November 25, 2021
FSC Announces 2021 Domestic Systemically Important Banks
The Financial Supervisory Commission (FSC) stated that the list of domestic systemically important banks (D-SIBs) for 2021 remains the same as that in 2020 with six banks including CTBC Bank, Cathay United Bank, Taipei Fubon Commercial Bank, Mega International Commercial Bank, Taiwan Cooperative Bank, and First Commercial Bank.
To ensure the stability of the banking system to support the development of real economy, as well as enhance the risk tolerance of systemically important banks in Taiwan to reduce the impact of their business risks toward the financial system, the FSC had consulted with the Central Bank, Ministry of Finance, and Central Deposit Insurance Corporation (CDIC) to finalize the designation framework of D-SIBs and enhanced supervision measures. The FSC amended the “Regulations Governing the Capital Adequacy and Capital Category of Banks” and issued the “Directions governing the identifying indicators and requirements for domestic systemically important banks” in December 2019. Under these regulations, the FSC designated five banks as 2019 D-SIBs and added First Commercial Bank as 2020 D-SIBs.
According to the regulations above, banks designated as D-SIBs must meet the 2% additional regulatory capital requirement and the 2% additional internal capital requirement before each year-end of the four years equally, report the “Contingent plan for the business crisis” to the competent authority, and pass the two-year scenario stress test each year, starting from the year next to that of the designated date. However, to respond to the impact of the Coronavirus disease 2019 (Convid-19) outbreak and to enhance the financial intermediary functions of banks to support the real economy, the FSC has amended related regulations to defer the implementation of the 2% additional internal capital requirement to allow D-SIBs to meet the measures from 2022 to 2025. Besides, the timeline for D-SIBs firstly reporting “Contingent plan for the business crisis” was also deferred to the end of August 2021.
The FSC states that the capital adequacy ratios of D-SIBs currently meet the minimum capital requirements for 2021, and they have reported the “Contingent plan for the business crisis” to the FSC and the CDIC. In addition, the results of the “2021 supervisory stress tests” that D-SIBs conducted all met the minimum requirement.
D-SIBs are leading banks in financial market. The FSC hopes that D-SIBs can take more responsibilities and missions for financial stability and comprehensively improve the stability and soundness of finance industry operation in business, behavior, and corporate governance.
Contact unit: Legal Affairs Division, Banking Bureau
Tel: +886 (2) 8968-9650
If you have any questions, please send an E-mail to https://fscmail.fsc.gov.tw
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Update：
2021-12-27