Analysts concerned by lack of legal footing stunting bond market's growth

Government officials say that asset securitization is encouraged, but there are some tough challenges to overcome first.

"What is most common in industrial countries is very difficult to achieve in Taiwan," said Sean Chen (3祠R), administrative vice-minister at the Ministry of Finance. "For example, to securitize housing mortgages, relevant regulations such as land laws and civil laws would have to be written.

"The most probable item of asset securitization would be credit cards," Chen said.

"But, the Trust Law (信託業法) is still in the Legislative Yuan. If it had been passed, we would already have a special purpose vehicle."