FSC Relaxes Shareholding Rules for Internet-Only Banks to Help Attract Diverse Shareholders
Taiwan's Financial Supervisory Commission (FSC) announced it will relax the requirement for financial industry shareholders to hold at least 40% of shares in internet-only banks that have been open for three years. This aims to encourage participation from diverse shareholders and increase operational flexibility, with implementation expected as early as the end of May.
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- 📰 Published: April 21, 2026 at 21:43
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(Central News Agency, Taipei, 21st) The Financial Supervisory Commission (FSC) announced today that considering internet-only banks' internal controls and board governance have matured after three years of operation, it will relax the requirement for financial industry shareholders to collectively hold at least 40% of shares. This is intended to facilitate the participation of diverse shareholders in internet-only banks. The regulations for the number of professional directors will also be adjusted. The proposed changes will be announced for a 30-day period and are expected to be implemented as early as the end of May.
Taiwan has three internet-only banks: Rakuten International Commercial Bank, LINE Bank, and Next Bank. Rakuten Bank and LINE Bank opened successively in 2021, while Next Bank opened in March 2022.
Wang Yun-chung, Deputy Director-General of the FSC's Banking Bureau, stated at a press conference today that there are two main adjustments in this amendment. First, Article 18-1 of the current Standards for Establishing Commercial Banks stipulates regulations on the shareholding structure, director qualifications, and numbers for the establishment of internet-only banks. This includes the requirement that shares held by financial industry promoters and shareholders must total at least 40%, with one bank or financial holding company holding over 25%.
Wang pointed out that considering all internet-only banks have been in operation for over three years, and their internal control and board governance functions are gradually maturing, the requirement for financial industry shareholders to hold at least 40% will be relaxed, but the requirement for one bank or financial holding company to hold over 25% will remain. Many external enterprises are also interested in the capital increases of internet-only banks, and it is hoped that the new measures can introduce shareholders with diverse backgrounds.
Second, regarding the professional qualification of directors, the original regulation required more than half of all directors to be professional directors. Wang noted that the original rule required 5 out of 9 directors in an internet-only bank to be professional directors. The new system adjusts this back to the regulations in Article 9 of the Regulations Governing Qualifications for Responsible Persons of Banks, which states that at least 2 out of 5 directors in a bank must be professional directors, with one additional professional director for every 4 additional directors.
Wang said that after the amendment, an internet-only bank with 9 directors will only need 3 professional directors. However, it is still required that at least one person has professional qualifications in fintech, e-commerce, or the telecommunications industry, hoping to make it less difficult for internet-only banks to find professional directors.
According to FSC statistics, as of the end of February this year, LINE Bank's accumulated loss reached NT$4.018 billion, Rakuten Bank's accumulated loss was NT$2.902 billion, and Next Bank's was NT$2.338 billion. As Rakuten Bank is planning a capital reduction of NT$2.78 billion and expects to complete a capital increase by the end of June or early July, there is public interest in whether Rakuten Bank can apply the new regulations.
Wang pointed out that the regulation will be announced for 30 days. If there are not many objections, it could be implemented as early as the end of May. If Rakuten Bank's application for the capital increase record date is after the regulation is implemented, it can be applied.
Among Taiwan's three internet-only banks, LINE Bank and Next Bank have already undergone capital reduction and increase. LINE Bank reduced its capital by NT$2.5 billion and increased it by NT$7.5 billion in June 2022, and increased its capital by NT$5 billion in June 2025, changing its capital to NT$20 billion. Next Bank reduced its capital by NT$2.643 billion and increased it by NT$2.643 billion in December 2023, with its paid-in capital remaining at NT$10 billion. Now, the third internet-only bank, Rakuten Bank, is also planning a capital reduction and increase. (Editor: Yang Lan-hsuan) 1150421
Taiwan has three internet-only banks: Rakuten International Commercial Bank, LINE Bank, and Next Bank. Rakuten Bank and LINE Bank opened successively in 2021, while Next Bank opened in March 2022.
Wang Yun-chung, Deputy Director-General of the FSC's Banking Bureau, stated at a press conference today that there are two main adjustments in this amendment. First, Article 18-1 of the current Standards for Establishing Commercial Banks stipulates regulations on the shareholding structure, director qualifications, and numbers for the establishment of internet-only banks. This includes the requirement that shares held by financial industry promoters and shareholders must total at least 40%, with one bank or financial holding company holding over 25%.
Wang pointed out that considering all internet-only banks have been in operation for over three years, and their internal control and board governance functions are gradually maturing, the requirement for financial industry shareholders to hold at least 40% will be relaxed, but the requirement for one bank or financial holding company to hold over 25% will remain. Many external enterprises are also interested in the capital increases of internet-only banks, and it is hoped that the new measures can introduce shareholders with diverse backgrounds.
Second, regarding the professional qualification of directors, the original regulation required more than half of all directors to be professional directors. Wang noted that the original rule required 5 out of 9 directors in an internet-only bank to be professional directors. The new system adjusts this back to the regulations in Article 9 of the Regulations Governing Qualifications for Responsible Persons of Banks, which states that at least 2 out of 5 directors in a bank must be professional directors, with one additional professional director for every 4 additional directors.
Wang said that after the amendment, an internet-only bank with 9 directors will only need 3 professional directors. However, it is still required that at least one person has professional qualifications in fintech, e-commerce, or the telecommunications industry, hoping to make it less difficult for internet-only banks to find professional directors.
According to FSC statistics, as of the end of February this year, LINE Bank's accumulated loss reached NT$4.018 billion, Rakuten Bank's accumulated loss was NT$2.902 billion, and Next Bank's was NT$2.338 billion. As Rakuten Bank is planning a capital reduction of NT$2.78 billion and expects to complete a capital increase by the end of June or early July, there is public interest in whether Rakuten Bank can apply the new regulations.
Wang pointed out that the regulation will be announced for 30 days. If there are not many objections, it could be implemented as early as the end of May. If Rakuten Bank's application for the capital increase record date is after the regulation is implemented, it can be applied.
Among Taiwan's three internet-only banks, LINE Bank and Next Bank have already undergone capital reduction and increase. LINE Bank reduced its capital by NT$2.5 billion and increased it by NT$7.5 billion in June 2022, and increased its capital by NT$5 billion in June 2025, changing its capital to NT$20 billion. Next Bank reduced its capital by NT$2.643 billion and increased it by NT$2.643 billion in December 2023, with its paid-in capital remaining at NT$10 billion. Now, the third internet-only bank, Rakuten Bank, is also planning a capital reduction and increase. (Editor: Yang Lan-hsuan) 1150421