To encourage financial institutions to establish branches in areas where financial services are lacking so as to improve local development of financial services and to balance the development between urban and rural areas, FSC announced proposed amendments to the Regulations Governing Domestic Branches of Financial Institutions on September 16, 2013.  Major amendments include:

  1. restrictions imposed on a financial institution by the Regulations concerning conditions for applying for branch establishment, the number of branches sought to be established, and the time limit for such applications, shall not be applicable if the location of the branch sought to be established by said financial institution is beneficial to the balanced development between urban and rural areas;
  2. a branch established under the aforesaid situation cannot be relocated for a period of 7 years, unless the competent authority permits such branch to relocate to other areas beneficial to the balanced development between urban and rural areas .