1. Name of Provisions

□Detailed Regulations on the Supervision of Mutual Savings Bank Businesses

2. Reasons for Modification

□ Amend detailed regulations to introduce the maturity cap applicable to calculating the debt service ratio (DSR) and update the language about future income, etc.

3. Major Provisions

□ Use the actual loan period as the loan period applicable to calculating debt in the DSR to determine if there is enough capacity to repay during the loan period.

◦ Otherwise, set the maximum period of 40 years, and introduce a transitional provision to prevent a disadvantage from occurring due to system changes (<Table 9> Subparagraph 12-2).

□ Apply the same determination criteria for regulatory evasion to calculating the DSR on a mutatis mutandis basis as the debt-to-income ratio (DTI) (<Table 9> Subparagraph 11).

□ Update the language about detailed regulations with an amendment to supervisory regulations.

◦ Update the language about future income in calculating annual income more comprehensively (<Table 9> Subparagraph 9).

◦ Update the language about “households” and “high-value houses” within supervisory regulations (<Table 9> Subparagraph 5-1 and Subparagraph 5-2).