Regulatory Alerts2023-06-29
Distribution of Credit Cards of Issuers Bound to a Banking Corporation by a Distribution Agreement
The Banking Supervision Department issued Proper Conduct of Banking Business Directive no. 473 to regulate credit card distribution agreements between banking corporations and other issuers under Section 7f of the Banking Law. The directive mandates neutral presentation of competitor cards, fixes distribution recompense to prevent market obstruction, and prohibits unreasonable refusals to enter into distribution agreements. It further establishes mandatory information sharing protocols and reporting requirements, with existing agreements required to be adjusted within six months of the directive's promulgation.
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