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Applications Process

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Application for establishing a branch by a foreign bank

Name of the Application form: Application for establishing a branch by a foreign bank
Responsible agency: Foreign Bank Division, Banking Bureau, Financial Supervisory Commission
Application forms available for downloading:
  1. Application for Establishment of a Branch in the ROC by Foreign Banks(PDF)
  2. Declaration of Foreign Bank’s Designated Representative(PDF)
  3. Application for Approved Branch Business Items(PDF)
  4. Table of Required Information for Foreign Bank Branch Business License(PDF)
Legal basis: Laws and Regulations Retrieving System of the Banking Bureau
Application process: Application flow chart(PDF FILE)
Documents required to be attached:

A foreign bank wishing to establish a branch in the ROC shall submit the following documents to the competent authority for approval:

 

1. Application.

 

2. A feasibility study, which shall include the following particulars:

(1) The business strategic consideration for the establishment of the proposed ROC branch, including the operation strategy of the head office and a comparison of the political, economic, trade and financial situations of countries neighboring the ROC.
(2) An (acknowledgement of its) understanding of the laws, tax system, banking laws and regulations, and banking system of the ROC.
(3) An analysis of the business benefits to be derived in the ROC and the feasibility thereof, including analysis of its potential competitors in Taiwan, the situation of bilateral trade, cross border investments and business opportunities between the ROC and the foreign bank's home country, and any corresponding banks, customers and their dealings with the bank.

 

3. Bank profile, including:

(1) Organization: A description of the brief history of the foreign bank (including any mergers/acquisitions ), its major departments, worldwide branches and network, its holding company and subsidiaries and the relevant shareholding information as well as their business operations, and the head office's supervision and management of its overseas branches (including the scope and frequency of bank audits).
(2) Introduction of its businesses, including the scope and focuses of its businesses, and comparative analysis of its assets, liabilities, profits and losses for the last three years.
(3) Principal Responsible Persons and Shareholders: Roster and background of its chairman, general manager, head of its international division and any shareholder holding 10% or more [of its issued capital] as well as the top ten shareholders.
(4) Home Country Introduction, including an analysis of the home country's country risk as assessed by a reputable publication, a description of the financial system of the home country, name of the home country regulator and its authority, as well as the scope and frequency of bank examinations, a description of the deposit insurance system, a description of any regulatory measures on foreign exchange transactions and outward/inward fund remittances as may be imposed by the regulator, and a description of the regulator's restrictions, if any, in respect of foreign banks' establishment and business operation of in such home country .

 

4. The foreign bank's ranking among the world's leading banks by capital or assets for the prior year, as well as the credit rating of the foreign bank by a globally recognized rating agency.

 

5. A self-assessment regarding the foreign bank's compliance with laws and regulations and the integrity of its business operations, as well as an explanation of any [legal/regulatory] violations, frauds, disciplinary actions imposed on the foreign bank, or failure to improve severe deficiencies in “anti-money laundering and countering the financing of terrorism” (AML/CFT) within the past five years.

 

6. A document issued by the financial regulator of the foreign bank's home country approving the establishment of a branch in the ROC.

 

7. A document issued by the financial regulator of the foreign bank's home country stating its willingness to cooperate with the ROC in sharing the supervisory and regulatory responsibility for the foreign bank, as well as a document [issued by such regulator] confirming the soundness of the foreign bank's business and financial conditions.


8. A letter of undertaking issued by the head office of the foreign bank promising to provide necessary (contingent) liquidity and financial support to branches in the ROC.

 

9. The resume and associated evidentiary documents of the proposed manager for the branch within the territories of the ROC.


10. The business plan of the branch, including:

(1) Market and business strategy and plan for future growth.
(2) The proposed business scope, general market condition for the main business items, and the plan for such business operations.
(3) The proposed internal organization and division of labor, organization chart as related to the head office, and the plan for staffing, hiring and training.
(4) Any operating rules or guidelines, risk management system, internal controls and audit system.
(5) A projection of assets, liabilities, profits and losses for the next three years, and an explanation of the basis for such projections.

 

11. Authenticated minutes of the board resolution approving the filing of an application to establish a branch in the ROC or an equivalent document thereof.


 

 

12. A certification by a certified public accountant of the bank's ratio of capital to risk-weighted assets as of the end of the latest fiscal year.

 

13. The Power of Attorney issued by a responsible person of the head office authorizing a lawyer or certified public accountant to file the application for approval to establish a branch in the ROC.


14. The income statements and balance sheets of the bank for the last three years certified by a certified public accountant.

 

15. Documentation proving the due incorporation and existence of the bank as a legal entity and the banking license issued by the regulator in the home country.

 

16. An authenticated copy of the bank's articles of incorporation.
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17. Authenticated letter of authorization designating a representative who shall serve as the person in charge of the bank (hereinafter referred to as the designated representative) within the territories of the ROC.

18. With respect to a foreign bank ranking outside top five hundred in capital or total assets worldwide for the year prior to submission of the application, statistics regarding the foreign bank's total transaction volume with the banks and enterprises in the ROC during the three calendar years prior to submission of the application.

 

19. A declaration of the designated representative.

 

20. Such other information or documents as may be required by the competent authority.
Any authentication of the documents referred to in the preceding paragraph shall be done by a notary public in the foreign bank's home country or by a ROC consulate or its equivalent.

 

A foreign bank shall complete the following procedures and commence operations within eight months after receiving approval to establish a branch (or an additional branch); otherwise the competent authority may revoke the approval to establish a branch/additional branch:
1. Remittance of working capital for its business operations in the ROC.

 

2. Submission of an Application for Approved Branch Business Items to the competent authority for approving business items for the branch.

 

3.Completion of the foreign company’s branch company registration (or amendment thereto) as required by the Company Law and related regulations.

 

4. Submission of an Application for Business License to the competent authority for the issuance of banking license and payment of the registration fee.

 

5. Report to the competent authority of the date on which the branch will commence business, and, as required by Articles 55 of the Banking Law, make public announcement in Chinese at the place where the branch is located regarding the particulars recorded on the banking license issued by the competent authority.
One extension to the period specified in the preceding paragraph may be granted upon application if there is an extraordinary event.

Related Q&A:  None
Contact person: 02-89689999 

 

 
Visitor: 7913   Update: 2021-02-03
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