Regulations Governing Foreign Bank Branches And Representative Offices Article 19-4

When a foreign bank’s branch calculates the following items, it may include 50% of the loan loss provision and reserves against liability on guarantees in accordance with regulations:1. The determination on whether a branch of the foreign bank has accumulated losses on its financial statements at the end of the previous fiscal year as specified in Article 14, Paragraph 2, Subparagraph 2, Item 3.2. The net worth specified in Article 14, Subparagraph 4 and Article 19-3, Paragraph 3.3. The calculating basis of total amount of deposits subject to mutatis mutandis application of Article 72 and Article 74-1 of the Banking Act.The competent authority may adjust the ratio for calculation in the preceding paragraph based on economic and financial conditions as well as the needs for business development.