Slower growth in loans: central bank

By Amy Su  /  Staff reporter

Sat, Jul 27, 2013 - Page 13

Annual growth of outstanding balances on housing loans and construction loans for last month continued to slow from a month earlier, statistics compiled by the central bank showed yesterday.

The outstanding balance of construction loans was NT$1.4732 trillion (US$48.71 billion) at the end of last month, the highest level in history, central bank data showed.

However, it was only 1.21 percent higher than the same period last year, its lowest level in more than three years, the bank said.

The latest data also showed the outstanding balance of housing loans reached a record high of NT$5.4725 trillion at the end of last month, up 2.87 percent from a year earlier.

However, it has been the fourth month in a row that the annual growth of the outstanding balance on housing loans slowed from a month earlier, the bank said.

Meanwhile, last month’s housing loans showed a month-on-month rise of NT$20.1 billion.

Nearly half of the increase came from mortgages with preferential interest rates for first-time homebuyers, an indication that speculative transactions in the property market have slowed due to the central bank’s credit control measures.