TAIPEI (TVBS News) — The Financial Supervisory Commission (FSC, 金管會) revealed on Wednesday (Aug. 28) that domestic banks' mortgage balances, including overdue loans, reached NT$10.6 trillion by the end of July. This figure represents a net growth of NT$616.6 billion over the first seven months of 2024, achieving 93.77% of the total mortgage balance growth for 2023.
Banking Bureau Deputy Director Tung Cheng-chang (童政彰) attributed the rising annual growth rate of mortgage balances to three main factors: the ongoing domestic economic recovery post-pandemic, emerging rigid demand for self-occupied housing, and the completion and handover of construction projects.
By the end of July, construction loan balances, including overdue loans, approached NT$3.7197 trillion, with an annual growth rate of 3.54%, marking two consecutive months of increase. Tung explained that this rise stems from banks aligning with government policies to increase disbursements for urban renewal and dilapidated building projects, coupled with higher construction costs driving up working capital needs.
According to Article 72-2 of The Banking Act of The Republic of China (銀行法), commercial banks cannot issue residential and corporate building loans exceeding 30% of their total deposits and financial bonds issued at the time of lending. Banks often set stricter internal limits, with most considering anything above 28% a warning zone.
The FSC also disclosed that, excluding the Land Bank of Taiwan (土銀) and the Export-Import Bank of ROC (輸銀), the total amount of residential and corporate building loans for 36 domestic banks increased to NT$14.86 trillion by the end of July, a monthly increment of NT$0.15 trillion. Concurrently, the total deposits and financial bonds issued rose to NT$55.85 trillion, a monthly increase of NT$0.58 trillion.
