On April 21, 2026, Taiwan’s Financial Supervisory Commission (the “FSC”) announced a draft amendment to Article 18-1 of the Regulations Governing the Establishment of Commercial Banks. The draft would, once an internet-only bank has been in operation for three years, relax the cap on the aggregate shareholding of financial-industry shareholders and adjust the requirements on the number of professional directors. 

Under the current rules, the shareholding structure, as well as the qualifications and number of directors of an internet-only bank, are subject to relatively strict requirements during the establishment phase. These requirements are intended to ensure that such banks fully observe financial supervisory regulations from the outset, while balancing professional financial management capabilities with innovation. The FSC noted that, after three years of actual operation, an internet-only bank’s internal controls, legal compliance, and board governance functions tend to become more mature and stable, and it therefore decided to ease the restrictions appropriately. 

Under the draft amendment, the cap on the aggregate shareholding of financial-industry shareholders and the requirements on the number of professional directors will be relaxed, allowing internet-only banks to bring in more diverse shareholders and strengthen their capital structure according to their operational needs, thereby further promoting innovation and sustainable development in digital financial services.