(1) Reasons for Proposal

This Amendment aims to prescribe in detail the level of a loan-deposit ratio that mutual savings banks shall comply with, and to make rational modifications to the standards for approving mid-range interest loans.

(2) Major Provisions

A. Modify standards for approving mid-range interest loans (Article 22-2 (2) 2)

Improve the standards for approving mid-range interest loans of savings banks to reflect the lowering, etc., of the maximum legal interest rate and to increase financial consumer benefits

B. Introduce regulations concerning the loan-deposit ratio (Article 44 (2) 4)

Maintain the loan-deposit ratio at a certain ratio (100/100 or lower) to prevent excessive loans by savings banks and to strengthen their financial soundness.