In a bid to protect itself from the bad loans dogging the nations banking sector, Fubon Financial Holding Co (富邦金控) has taken a more prudent approach in granting loans and issuing credit cards, officials said yesterday.
"We've decided to gradually round off the cash-advance card business, but we will still focus on credit cards, housing and car loans, as well as small unsecured loans," said Lin Chi-feng (林啟峰), president of Fubon Financial's consumer finance group, during a press event to announce their latest credit-card marketing campaigns.
He said the company started tightening the loan granting process in July, and will now pay closer attention to reviewing applicants who have more than five credit cards.
In addition, those with a debt burden ratio of higher than 22 will definitely be rejected, he said, citing the government's regulations.
Fubon Financial's banking arm, Taipei Fubon Bank (台北富邦銀行), is the nation's sixth-largest card issuer with an outstanding balance of NT$27.06 billion (US$848.8 million).
Although many said financial institutions are facing their chilliest winter yet, Lin noted they are still setting positive goals.
With the launch of its latest marketing campaigns, the bank expects to attract 70,000 to 80,000 new cardholders by the end of next month, said Tiger Chan (詹文虎), senior vice president of the bank's marketing department.
Now that a bank-instigated relief program is available to retail card debtors, Lin said the business should be able to bounce back in summer.