The Financial Supervisory Commission("FSC") amended the "Directions Concerning the Establishment of Foreign Branches by Domestic Banks" (hereinafter the"Directions") on February 12, 2019, with the amendment effective on the same day. The focus of this amendment was on shortening the foreign branch establishment approval period to twenty-five business days for domestic banks with "excellent global operation management capabilities"
I. Pursuant to Article 3 of the Directions, with respect to a domestic bank's application to establish foreign branches, the competent authority's approval period was originally 30 business days from the filing day. However, for the expansion of global financial networks, domestic banks are encouraged to establish branches in countries and regions which do not yet have offices. For domestic banks with excellent global operation management capabilities intending to establish branches in countries or regions which do not yet have branches established, the approval period is shortened by five business days.
II. Banks which self-evaluate to have "excellent global operation management capabilities" shall attach the followings to their application:
1. Statements of business(financial) operations of the bank's foreign branches (subsidiaries) for the past three years.
2. Reviews, financial audit results, and legal compliance statuses of the bank's foreign branches(subsidiaries) conducted by the local financial supervisory authority, as well as any sanctions by the local supervisory authority for the past five years.
3. Reviews by the FSC on the bank's foreign branches (subsidiaries), whether non-compliance found in any audit have been corrected, or any sanctions by the FSC for the past three years.
4. Any other evidence showing excellence in global operation management
0+
