Proposed Amendments to Regulations on Supervision of Banking, Insurance, Mutual Financial, Mutual Savings Bank, and Specialized Credit Finance Businesses

Laws and Regulations Announcement Amendments Proposed to Regulations on Supervision of Banking, Insurance, Mutual Financial, Mutual Savings Bank, and Specialized Credit Finance Businesses Agency: Financial Services Commission Proposed amendments:  Regulations on Supervision of Banking Business  Regulations on Supervision of Insurance Business  Regulations on Supervision of Mutual Financial Business  Regulations on Supervision of Mutual Savings Bank Business  Regulations on Supervision of Specialized Credit Finance Business FSC Notice number: 2017-218 Announcement date: August 3, 2017 Summary: The Financial Services Commission announced amendments to regulations on supervision of banking, insurance, mutual financial, mutual savings bank, and specialized credit finance businesses as a follow-up to the government’s August 2 plan to curb speculation in the housing market and help genuine potential home buyers. Key provisions:  Unless specified otherwise under the law, the loan-to￾value (LTV) and debt-to-income (DTI) ratios for new mortgage loans are to be reduced to 40%.  The new LTV and DTI ratios may be raised by 10 percentage points for low-income and genuine potential home buyers and lowered by 10 percentage points for multiple mortgage loan borrowers.  The criteria for the enhanced restrictions on new mortgage lending and maturity extension in speculation-designated areas have been changed from an individual borrower to an individual household. Public comment for the proposed amendments: The public comment period for the proposed amendments ends on August 7, 2017.