Wed, Jun 08, 2016 - Page 13 News List

FSC mulls rule changes to promote fintech training

By Ted Chen  /  Staff reporter

The Financial Supervisory Commission yesterday said that it is mulling regulatory changes for securities and futures brokerages so that they may raise funds to train their employees as financial services become increasingly digitized.

The commission said that it is drafting changes to regulations on the amount of special reserves securities and futures brokerages may appropriate, so that the companies may have the means to fund training programs to help employees adjust to the expected proliferation of financial technology (fintech).

Financial sector employees might find themselves redundant as companies replace humans with cost-effective digital financial services, experts said.

Banks may appropriate 0.5 to 1 percent of their annual net income for special reserves, while securities and futures brokerages may raise funds ranging between NT$170 million and NT$340 million (US$5.26 million and US$10.51 million), based on last year’s aggregate net income of NT$34.1 billion for the sector, the Securities and Futures Bureau said.

The new measure would likely be extended from this year to 2018, during which the funds may be used for training programs and career consultation, the commission said, adding that similar plans are in the works for the insurance sector.

Separately, nonperforming mortgages in April rose to 0.19 percent, reaching a new high in the past two years, commission data showed.

As of the end of April, the amount of delinquent mortgages was NT$11.41 billion, data showed.

Total mortgages also reached a new high at the end of April at NT$6.14 trillion, according to the data.

Meanwhile, total loans to construction companies, which is regarded as a barometer for the real-estate sector, held steady as of the end of April, the commission said.

Total construction loans rose to a new high of NT$6.14 trillion, while the delinquency rate fell to 0.18 percent, it said.

The outcomes are deemed as acceptable in light of the downturn in macroeconomic conditions, the commission said, adding that financial institutions are aware of the situation.

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