1. Name of Regulations

□ Detailed Enforcement Rules for the Supervision Task of Banking Business and Detailed Enforcement Rules for the Supervision Regulations of Financial Holding Companies

2. Purpose of revision 

□ The revision aims to introduce a stress-buffer capital system in order to impose the obligation to set an additional capital reserve based on the results of analyses of crisis situations (stress test), so as to enhance the capacity of banks and their holding companies to absorb losses.

3. Contents of revision

[Revision and newly establishment to the Main Text and Appendices of the Detailed Enforcement Rules]

a. Statutory grounds for the detailed calculation criteria related to the stress-buffer capital system (Article 17-4 of the Detailed Enforcement Rules for the Supervision Task of Banking Business; Article 6-6 of the Detailed Enforcement Rules for the Supervision Regulations of Financial Holding Companies)

b. Provision of detailed calculation standards related to the stress-buffer capital system (Appendix 9 of the Detailed Enforcement Rules for the Supervision Task of Banking Business; Appendix 8 of the Detailed Enforcement Rules for the Supervision Regulations of Financial Holding Companies)

c. Revision of provisions in accordance with the amendment to higher Regulations (Article 17 and Article 29 of the Detailed Enforcement Rules for the Supervision Task of Banking Business; Article 6, Article 12-3, and Article 12-4 of the Detailed Enforcement Rules for the Supervision Regulations of Financial Holding Companies)