Taiwan's Financial Supervisory Commission Reports Strong Increase in Housing, Consumer Loans.

The Taiwan Stock Exchange has continued to exhibit a lively atmosphere in recent times, with market capital inflow being strong and continuous. This has sparked concern over the financial leverage of the general public. To address the potential risks associated with the phenomenon of "four loans (four types of credit) coexisting," the Financial Supervisory Commission (FSC) has recently released the latest statistical data for clarification. According to the FSC's data, while the overall credit business of commercial banks has expanded with the economy and market activities, the overall risk remains within a controllable range, and the regulatory agency will continue to closely monitor the growth trajectory of housing loans and consumer loans, as well as the rate of delinquency.

Based on the FSC's specific statistics, among various major loan categories, the growth rate of residential housing loans (housing loans), which is closely related to the public's asset allocation, reached 4.3%, reflecting the rigidity of housing demand and trading intensity. In the realm of consumer financing, the growth rate of car loans reached 8.07%, while the year-over-year growth rate of personal comprehensive consumer loans, commonly referred to as small-scale loans, reached 12.12%, indicating that the public's desire to obtain funds through credit loans for capital turnover or investment has increased. These data highlight the trend of expanding capital demand and debt scales in the context of the stock market and real estate market both being active.

The expansion of funding and leverage, which has long been a focal point of attention for financial regulators, has been a major concern. When the stock market performs strongly, investors often use loans and other financing methods to raise funds for investment in the stock market, which is also a key reason for concerns over the "four loans coexisting" phenomenon. However, from the perspective of banks, credit approval must adhere to strict risk control principles, including assessments of borrowers' repayment ability, debt-to-equity ratios, and collateral evaluation, all of which have established guidelines. The FSC emphasizes that the overall risk of bank credit is controllable, meaning that most financial institutions have a reasonable risk buffer when extending loans and have not yet entered a state of uncontrolled over-lending.

Although there is no risk at present, the financial market is highly volatile, and the overall economic environment has numerous variables. The FSC stated that it will adopt a continuous monitoring approach, particularly with regard to the growth momentum of housing loans and consumer loans, as well as the dynamic monitoring of delinquency rates related to loan quality. This implies that the regulatory agency not only looks at the increase in loan volume but also attaches great importance to changes in loan quality. If it finds any unusual trends in the delinquency rates of specific banks or the overall market, it can take timely measures to ensure the stability of the financial system and the safety of the public's capital.