Taiwan Formally Eases Shareholding and Board Rules for Internet-Only Banks

Taiwan currently has three internet-only banks: Rakuten International Commercial Bank, LINE Bank and NEXT Bank. Under the Regulations Governing Standards for the Establishment of Commercial Banks, banks must have minimum paid-in capital of NT$10 billion. Financial-industry shareholders were previously required to hold at least 40% of an internet-only bank in aggregate to ensure financial expertise and regulatory stability. But after more than three years of operation, the banks faced a need to raise capital and bring in strategic investors, with the threshold increasingly constraining their financing and governance flexibility.

The Financial Supervisory Commission issued amendments on June 30, 2026, which took effect the same day. Once an internet-only bank has operated for three years, financial-industry shareholders are no longer subject to the aggregate 40% minimum, though at least one bank or financial holding company must retain a stake of more than 25%. Director qualifications and board composition will follow the rules for conventional banks, with at least one professional director who has five or more years of experience in fintech, e-commerce or telecommunications. On a nine-member board, the minimum number of professional directors may fall from five to three.