The Financial Supervisory Commission said yesterday it wasn't considering revising the property loan quota for banks, after a rumor prompted construction shares to gain 3.57 percent over the last two days.
The Chinese-language Commercial Times reported on Wednesday that the financial regulator might revise the quota in response to requests from banks and property developers.
But the commission said it would continue to regulate property loans in accordance with Article 72-2 of the Banking Act (
The law stipulates that loans extended for residential and commercial properties may not exceed 30 percent of the aggregate of a bank's deposits and financial debentures.
The Commercial Times report said the commission might reinterpret the law to allow lenders to exclude revolving credit borrowed against property when calculating their loan quotas.
But the commission said that as most banks had extended property loans equal to only 19 percent or 20 percent of their total deposits and debentures, there was still ample room for growth.
The commission also said that it had amended the measures governing financial holding companies' re-investments in an effort to strengthen its supervisory power and enhance corporate governance.
The amendments require financial holding firms to detail their re-investment plans.
The regulator also scrapped an automatic approval mechanism for financial holding firms. From now on, these firms' re-investment plans will have to go through a 15-day screening process.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to
RSS