With the aim of assisting banks to keep up with development trend of digitization and business opportunities, as well as to encourage financial innovation and deepen financial inclusion in order to meet the needs of young generation consumers, on April 26, 2018, the FSC announced a policy for internet-only bank establishment in Taiwan.
The main points are as the following:
- Minimum paid-in capital requirement: NT$10 billion, the same as required for setting up a conventional commercial bank.
- Scope of business: the same as a conventional commercial bank.
- Requirements of founders: At least one of an internet-only bank’s founders should be a bank or a financial holding company and the minimum shareholding held by the bank or financial holding company should reach 40% (or a commitment to reach this level within a certain time)
- Fit and proper requirement for major shareholders: Integrity and in compliance with regulations, as well as meeting qualification requirements for person in charge of banks; financial and business performance may enable the internet-only bank to operate soundly; able to concretely elaborate business strategy of the internetonly bank, types of cooperation with financial institutions, business plan, investment structure, etc; in cases where a major shareholder is from non-financial industry, i.e. with fintech, e-commerce or other expertise, must present a successful business model.
- Principle of supervision: Subject to the same set of supervisory requirements applicable to conventional banks, i.e. compliance framework, customer data protection, information security control standards, anti-money laundering system, corporate governance, etc.
- Physical presence: Apart from the head office and a customer service center to take care of customers’ needs face to face, an internet-only bank may not establish physical branches.
The FSC seeks opinions and suggestions for the policy of internet-only bank establishment from April 26 to May 31. Furthermore, the FSC will hold a public hearing to collect feedback from the public, as reference for the policy planning afterwards.
Visitor： 365 Update： 2020-07-14