In the past, when applying Articles 32 to 33-2 ofthe Banking Act, one needs to reference the many interpretation rulings issuedby the Financial Supervisory Commission (“FSC”) to clearly define the terms “abank’s own responsible person,” “the responsible person of a bank,” “a staffmember in charge of credit extensions,” and “an interested party in creditextensions conducted by a bank.”

On September 27, 2022, the FSC issued the memoJin-Guan-Yin-Fa-Zi No. 11101445721, combining interpretations in the past onterms in the Banking Act regarding interested parties in credit extensions,such as “a bank’s own responsible person,” “the responsible person of a bank,”“a staff member in charge of credit extensions,” and “interested party in creditextensions conducted by a bank.” Among them, with respect to the application ofArticle 33-1 of the Banking Act, it states that, “the following persons do not constitutean interested party in credit extensions conducted by a bank”:

1.       The enterprise invested by an enterprisewhose responsible person is the spouse, a relative by blood within the thirddegree of relationship or a relative by marriage within the second degree of relationshipof the chairman of the corporate director or supervisor of the bank, or anatural person designated in accordance with the law to exercise duties, or acorporate’s authorized representative elected as a director or supervisor, towhich the circumstances listed in Article 33-1 of the Banking Act do not apply.    

2.       The enterprise reinvested by an enterpriseinvested by a bank, to which the circumstances listed in Article 33-1 of theBanking Act do not apply.

3.       The enterprise invested by an enterprisewhose responsible person is the spouse, a relative by blood within the thirddegree of relationship or a relative by marriage within the second degree of relationshipof the natural person who is the responsible person of a bank, to which thecircumstances listed in Article 33-1 of the Banking Act do not apply.

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