From the Regulatory News

FSC Taiwan has actually revealed certain developments as a result towards COVID-19 pandemic. Such improvements tend to be delay utilization of the final Basel III statutes and you can postponement regarding inner investment buffer standards to own banking institutions. FSC Taiwan together with requested financial institutions for taking procedures getting business and you will personal individuals that have been impacted by brand new pandemic. To know the risk-impact capabilities and money suitability away from domestic banks less than COVID-19 crisis, FSC Taiwan is actually requiring 36 domestic banking companies so you can report ahead of time the outcome of one’s second mainstay worry sample for the 2020. The test circumstances should include the newest impression of one’s epidemic towards the the fresh financial field and you will financial ecosystem.

According to the previous action from the BCBS to resolve the new COVID-19 pandemic, FSC Taiwan has just modified the brand new routine getting utilization of the Basel III last rule. FSC Taiwan features set a target of 2023, towards the implementation of the final Basel III laws and regulations. Regarding the genuine property exposures on the basis of the borrowed funds-to-Really worth Proportion according to the standard method for credit chance, the brand new tentative execution time try defer because of the 12 months, to help you . The needs of banks’ inner money buffer in addition to business drama contingency agreements of d omestic systemically crucial finance companies ( D-SIBs) was as well as postponed from the 1 year. To make certain that financial institutions are on an identical base inside the measuring the fresh new requested credit loss (ECLs) from rescue finance within the IFRS nine, FSC Taiwan is actually attempting to assemble views out-of banking companies and can soon issue frequently asked questions (FAQs) into class and you will ECL aspect out of recovery finance.