Notice of the Draft Announcement to the "Regulations Governing Issuance of NTD Bank Debentures by Foreign Bank Branches" for Public Comments
2023-01-03
In order to support Taiwan's target for the net zero transition by 2050, and encourage financial institutions to complete the transition to sustainability and carbon reduction, the Financial Supervisory Commission (FSC), Environmental Protection Administration, Ministry of Economic Affairs, Ministry of Transportation and Communications, and Ministry of the Interior jointly issued "Criteria for Determining Whether Economic Activities Qualify as Sustainable” (hereinafter referred to as “The Criteria”) on December 8, 2022. The Criteria encourages financial institutions to invest capital in sustainable economic activities. To assist foreign bank branches in Taiwan participate in financing sustainable economic activities, the FSC has proposed to amend Article 2 and Article 4 of the "Regulations Governing Issuance of NTD Bank Debentures by Foreign Bank Branches". The key points of the amendment are as follows:
To assist foreign bank branches in Taiwan to support the government's carbon reduction policy, the scope of the use of funds raised through bank debentures issued by foreign bank branches in Taiwan are relaxed. The scope expands from the important public construction, offshore wind power construction, and other green energy industries to general economic activities for 16 items and forward-looking economic activities for 13 items of The Criteria.
To ensure that the funds raised through bank debentures issued by foreign bank branches in Taiwan are used in accordance with the purpose of issuance, the FSC amended articles to require foreign bank branches in Taiwan to set up related audit and management mechanisms for the use and management of funds.
The FSC stated that the relaxation of regulations in the legislation is expected to assist foreign bank branches in Taiwan provide credit and financing for sustainability and low-carbon transition economic activities and encourage companies to implement carbon reduction transition and facilitate achieving carbon reduction targets. The proposed amendments will be published in the Executive Yuan Gazette, and, in addition, the FSC will post a general description along with a comparison chart of revised articles on its website. Anyone wishing to comment may visit the FSC website within 60 days after the date of the public announcement and submit comments by visiting FSC Laws and Regulations Retrieving System.
Contact unit: Foreign Banks Division, Banking Bureau
Telephone: (02) 8968-9793
If you have any questions, please send an email to:FSC
To assist foreign bank branches in Taiwan to support the government's carbon reduction policy, the scope of the use of funds raised through bank debentures issued by foreign bank branches in Taiwan are relaxed. The scope expands from the important public construction, offshore wind power construction, and other green energy industries to general economic activities for 16 items and forward-looking economic activities for 13 items of The Criteria.
To ensure that the funds raised through bank debentures issued by foreign bank branches in Taiwan are used in accordance with the purpose of issuance, the FSC amended articles to require foreign bank branches in Taiwan to set up related audit and management mechanisms for the use and management of funds.
The FSC stated that the relaxation of regulations in the legislation is expected to assist foreign bank branches in Taiwan provide credit and financing for sustainability and low-carbon transition economic activities and encourage companies to implement carbon reduction transition and facilitate achieving carbon reduction targets. The proposed amendments will be published in the Executive Yuan Gazette, and, in addition, the FSC will post a general description along with a comparison chart of revised articles on its website. Anyone wishing to comment may visit the FSC website within 60 days after the date of the public announcement and submit comments by visiting FSC Laws and Regulations Retrieving System.
Contact unit: Foreign Banks Division, Banking Bureau
Telephone: (02) 8968-9793
If you have any questions, please send an email to:FSC
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1666
Update：
2023-01-03