pc
nid 92150
Apr 23, 2026
pthandapani@vixio.com
Taiwan
Financial Supervisory Commission - Banking Bureau
financial services
129% of draft length
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1713 charsTaiwan's Financial Supervisory Commission Proposes Relaxing Shareholder and Director Requirements for Pure Online Banks
On April 21, 2026, Taiwan's Financial Supervisory Commission (FSC) announced proposed amendments to Article 18-1 of the Commercial Bank Establishment Standards to relax ownership and governance requirements for pure online banks (POBs) after three years of operation.
The FSC is modifying restrictions on financial institution shareholder holdings and adjusting professional director requirements for POBs. Currently, the Commercial Bank Establishment Standards impose strict equity structure, director qualification, and director number requirements for POBs at establishment to ensure adequate understanding and compliance with financial regulatory standards during their initial phase.
The FSC determined that after three years of actual operations, POBs will have achieved mature and stable internal controls, compliance procedures, and board governance functions. The proposed amendments aim to allow POBs to introduce diverse shareholders and strengthen capital reserves according to operational development needs, while promoting innovation in digital financial services. The relaxation is intended to balance financial professional management capabilities with innovation development objectives.
The proposed amendments will be published in the Executive Yuan Gazette and on the FSC website. Stakeholders may submit comments within 30 days of publication through the FSC's "Regulatory Query System" draft announcement webpage. The FSC will conduct a formal regulatory announcement procedure in accordance with the Administrative Procedure Act to solicit public input before finalisation.
The contact unit is the FSC Banking Bureau's Trust, Securities and Payments Division, reachable at (02)8968-9763.
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2204 charsTaiwanese Financial Supervisory Commission Proposes Relaxing Shareholder and Director Requirements for Online Banks
The Taiwanese Financial Supervisory Commission (FSC) has announced that it will issue a draft amendment to Article 18-1 of the Standards for the Establishment of Commercial Banks which is states will relax shareholder and director requirements for internet-only banks.
The draft amendment will prescribe:
Definition and operational scope including defining internet-only banks as institutions providing financial services primarily through internet or electronic channels and strictly limiting their physical presence to a head office and a customer service center, without standard physical branches.
Initial capital and shareholder requirements including a mandate that the minimum paid-in capital must be fully subscribed by promoters without public offering initially. At the outset, financial industry promoters must hold a combined total of at least 40 percent of the shares, with a single bank or financial holding company holding over 25percent. Non-financial promoters with proven expertise in fintech, e-commerce, or telecommunications may hold over 10percent.
Business plan and exit strategy obligations including requiring the submission of a business plan that details customer identification mechanisms, IT security and business continuity procedures, an audit-certified five-year IT budget, liquidity management, and a comprehensive market exit plan outlining customer refund procedures and funding sources.
Post-three-year shareholding relaxation including a new provision that allows internet-only banks, after three years of operation, to bypass the 40% minimum shareholding restriction for financial industry shareholders, facilitating the introduction of diverse shareholders and capital to support digital innovation.
Board of directors qualifications including adjusting governance rules after the three-year mark to align director numbers and qualifications with standard bank responsible person regulations , while maintaining a strict mandate that at least one director must possess over five years of high-level professional experience in Fintech, e-commerce, or telecommunications.
The FSC states that the amendment will be published for feedback in the gazette shortly.