TAIPEI (TVBS News) — The Ministry of Finance (MOF, 財政部) on Monday (Sept. 2) declined to comment on whether the lending capacity for real estate loans of the eight state-owned and partially state-owned banks has fallen below NT$500 billion, emphasizing its ongoing supervision to prioritize the needs of first-time homebuyers and protect borrowers' rights.
Reports indicate that if considering the "approved but not yet disbursed" loans, the actual lending capacity of these banks is indeed below NT$500 billion. Due to the ongoing real estate boom, many banks are nearing the critical lending threshold defined by Article 72-2 of "The Banking Act of the Republic of China" (銀行法). This situation has led to increasing reports of loan application delays and long waiting times for disbursements.
Article 72-2 stipulates that the total loans for residential and commercial buildings by commercial banks should not exceed 30% of their deposits and financial bonds. However, banks often set stricter internal limits, typically considering 28% as the warning zone. Land Bank of Taiwan (土地銀行), the nation's sole specialized bank for construction loans, is not subject to this restriction but still manages its loan concentration to avoid overexposure.
Market estimates suggest that if the 30% ceiling is applied, the eight banks could still lend approximately NT$800 billion in real estate loans. However, considering a 28.5% limit and the "approved but not yet disbursed" loans, the lending capacity falls below NT$500 billion.
An MOF official stated that the relevant figures fluctuate with new repayments and borrowings, hence no comment was made. The official reiterated the commitment to supervise banks to ensure risk control while meeting the housing needs of first-time buyers.
Several bank executives mentioned that for already approved loans, internal quotas within legal limits would ensure smooth disbursements. They advised customers to align the house transaction deadlines with the bank's disbursement schedules to avoid defaults.
The Central Bank of the Republic of China (中央銀行) also held a meeting on Monday to discuss the lending practices and complaint-handling mechanisms. In a press release, the central bank urged banks to actively address loan application difficulties and support first-time homebuyers.
