The central bank yesterday said that it had met with 36 local lenders and the National Federation of Credit Cooperatives to make sure they comply with credit control measures when processing mortgage applications.
The central bank made the closed-door meeting known in a statement yesterday to highlight its resolve to cool the local property market.
Housing transactions last month surged 28 percent month-on-month to 21,385 units in the nation’s six special municipalities, as negative effects of a local COVID-19 outbreak faded.
Photo: Hung Jui-chin, Taipei Times
The central bank reminded lenders to stand by its ban on grace periods for purchases of second homes in the six special municipalities, as well as in Hsinchu county and city.
The removal of grace periods on Friday last week and two previous waves of credit controls were intended to prevent funds from flowing into the local property market, which has seen a boom amid global monetary easing, central bank Governor Yang Chin-long (楊金龍) said.
The policymaker also urged lenders to implement risk pricing practices and avoid cutthroat competition to win customers.
Lenders should also warn borrowers of potential interest rate increases when global central banks reverse their loose monetary policy stances, the central bank said.
The US Federal Reserve has indicated that it plans to taper its bond purchasing program later this year and raise interest rates as the US economy emerges from the COVID-19 pandemic.
Yang on Thursday said that credit controls are not effective in curbing housing transactions, though they have achieved the goal of maintaining the nation’s financial stability.
Housing transactions in Taipei last month soared 28 percent month-on-month to 2,487 units, while Taoyuan and Taichung reported advances of 26 percent and 37 percent to 3,757 and 4,011 units respectively.
Housing deals in Tainan and Kaohsiung advanced 19 percent and 41 percent each to 2,221 and 3,677 units respectively.
Sinyi Realty Inc (信義房屋) said the market would need more time to assimilate the ban on grace periods.
Ryanair, Transavia, Volotea and other low-cost airlines are feeling the financial pain from high jet fuel prices as a result of the Middle East war and are cutting flights. The closure of the Strait of Hormuz has taken a huge chunk of oil supplies off the market, sending the price of jet fuel soaring and triggering fears of shortages that could force airlines to cancel flights. Airlines are not waiting for a lack of supplies to react. “Travel alert: Airlines are cutting thousands of flights right now,” Travel Therapy host Karen Schaler said in an Instagram reel this past weekend.
MANAGING RISKS: Taiwan has secured LNG sufficient to cover 95 percent of electricity demand for next month, UBS said, describing the government’s approach as proactive UBS Group AG has raised its forecast for Taiwan’s economic growth this year to 8 percent, up from 6.9 percent previously, and said expansion could reach as high as 8.6 percent if external energy shocks are avoided. The upgrade reflects a stronger-than-expected first-quarter performance and sustained momentum in artificial intelligence (AI)-driven exports, which UBS said are providing a firm foundation for growth despite geopolitical and energy risks. Taiwan’s GDP expanded 13.69 percent year-on-year in the first quarter, the fastest growth since the second quarter of 1987, the Directorate-General of Budget, Accounting and Statistics (DGBAS) reported on Thursday. On a seasonally
Shares of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) have repeatedly hit new highs, but an equity analyst said the stock’s valuation remains within a reasonable range and any pullback would likely be technical. The contract chipmaker’s historical price-to-earnings (P/E) ratio has ranged between 20 and 30, Cathay Futures Consultant Co (國泰證期) analyst Tsai Ming-han (蔡明翰) told Central News Agency. With market consensus projecting that TSMC would post earnings per share of about NT$100 (US$3.17) this year, supported by strong global demand for artificial intelligence (AI) applications, and the stock currently trading at a P/E ratio of below 25, Tsai said the valuation
The list of Asian stocks that benefit from business partnership with Nvidia Corp is getting longer, as the region further integrates into the artificial intelligence (AI) chip giant’s business ecosystem. Just in the past week, South Korea’s LG Electronics Inc, Taiwan’s Nanya Technology Corp (南亞科技), as well as China’s Huizhou Desay SV Automotive Co (德賽西威) and Pateo Connect Technology Shanghai Corp (博泰車聯) have become the latest to rally on news of tie-ups, supply-chain participation or product collaboration with the US chip designer. Asian suppliers account for about 90 percent of Nvidia’s production costs, up from about 65 percent last year, data compiled
RSS