The FSC approved amendments to the 「 Regulation on Supervision of Banking Business」and「Regulation on Supervision of Financial Holding Companies」on May 15, 2019. According to the revised regulations, new online-only banks will be granted two to three years of grace period for the implementation of Basel III regulations.

► (Capital regulations) Basel I regulations will apply for the first three years since the launch of a new online-only bank. Basel III regime will be phased in from the fourth year of business.
► (Liquidity Coverage Ratio) 80% or above in the first year; 90% or above in the second year; full implementation of Basel III in the third year of business.
► (Net Stable Funding Ratio) Implementation will be deferred for the first three years before its full implementation from the fourth year of business.
► (Leverage ratio) Implementation will be deferred for the first three years before its full implementation from the fourth year of business.

The revised regulations will go into effect on May 21, 2019.

New applicants for preliminary approval for online-only bank business will be required to submit soundness management measures based on the revised regulations.

* Please refer to the attached file for details.