The Banking Bureau of the Financial Supervisory Commission of the Executive Yuan amended the “Directives Governing Sales of Non-Performing Loans by Financial Institutions” on March 14, 2013, effective immediately.  Major amendments include: (1) Sale of non-performing loans by financial institutions is now permitted only as an exception, with the general rule being that financial institutions should collect non-performing loans by themselves.  A financial institution can sell non-performing loans to others only under certain circumstances (such as in cases where the percentage of outstanding loans is more than 3% and the situation is not improved after the financial institution’s self-collection, or in cases involving syndicated loans or credit facilities extended by overseas branches); (2) a financial institution, when selling non-performing loans, should set forth conditions which the buyer should not violate and should require the buyer not to take inappropriate collection measures.