The approval follows a multi-stage review and introduces phased output floor requirements.

Taiwan’s Financial Supervisory Commission (FSC) has approved seven banks to adopt the internal ratings-based (IRB) approach for calculating capital requirements for credit risk starting from the fourth quarter of 2026. The FSC began accepting applications in the first half of 2024 The banks will gradually reduce their output floor ratio over a five-year transition period as they move from the standardised approach to internal models. The approved banks are Taiwan Cooperative Bank, Fir