Regulatory Alerts2016-07-11
Added
Amendments to Proper Conduct of Banking Business Directive no. 454 regarding early repayment of non-housing loans
The Proper Conduct of Banking Business Directive no. 454 is amended to require banking corporations to provide explanatory notes to borrowers at the time of signing loan agreements and upon requests for early repayment. The revisions simplify the presentation of capitalization component formulas by allowing references to the banking corporation’s website instead of including the full calculation methods in the notes. Additionally, the directive clarifies that for loans issued prior to April 1, 2016, the customer classification for early repayment fees is determined by the status on the repayment date, whereas for loans issued from April 1, 2016 onward, it is determined by the classification on the issuance date. These amendments replace the Supervisor’s Letter dated March 20, 2016, and apply from the date of publication.
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