[Finance] Central Bank Not Easing Property Market Controls, Yang Chin-long: Loans Flowing into the Stock Market
bellala 央廣3h ago
The Central Bank held its second quarterly board meeting today (18th), maintaining unchanged interest rates and property market control measures. Central Bank Governor Yang Chin-long stated there are three reasons for not easing property market controls: first, bank loans have decreased in real estate concentration but have flowed into the stock market, not the real economy; second, although the property market is "soft landing," it is a bit slow; third, other real estate policies, such as the "New Youth Housing" loan program, still need to be observed for their impact on the property market. Yang Chin-long also mentioned that the Central Bank will closely monitor credit expansion related to banking activities in the stock market. #Please listen to reporter Chen Lin-hsing-hung#
Since the Central Bank moderately adjusted the loan-to-value ratio limit for second-home purchases by individuals nationwide in March this year, according to Central Bank statistics, the proportion of home purchase loans handled by domestic banks for individuals without self-occupied housing has continued to increase, and the proportion of loans for urban renewal and old house reconstruction has also trended upwards.
At the post-board meeting press conference on the 18th, Central Bank Governor Yang Chin-long stated that the concentration of bank loans in real estate has continued to decline from a high of 37.6% at the end of June 2024 to 35.17% by the end of May this year. However, domestic housing price corrections have been limited, and the burden of home purchases for the public remains heavy. Furthermore, since the pandemic, Taiwan has seen the largest cumulative increase in housing prices among major economies, and its housing price-to-income ratio remains high. Additionally, after deducting real estate loans, credit loans related to the stock market have significantly expanded, and have not flowed into the real manufacturing sector.
Regarding the significant expansion of credit related to the stock market, Yang Chin-long responded to media inquiries by stating that the Central Bank's attitude so far is to "closely monitor" and not yet to conduct "financial examinations." If necessary, relevant data will be requested from the Credit Information Office for comparison. Yang Chin-long said: "(Original sound) The Central Bank will also pay attention to this issue. So far, we are monitoring, not yet conducting financial examinations. Whether the Financial Supervisory Commission conducts financial examinations, I do not know, as that is their area of responsibility. However, from the Central Bank's perspective, we are still closely monitoring and gathering information, including what data we need to obtain from the Credit Information Office, to further grasp the issue of credit expansion."
Yang Chin-long believes that the current enthusiasm in the Taipei stock market is different from the past. In the past, the economy was very poor, and the stock market plummeted. Now, the stock market is enthusiastic because everyone is interested in the AI technology industry, and the technology industry is indeed making money, indicating a good economy. The Central Bank has also revised Taiwan's economic growth rate upwards for this year. The stock market indeed has fundamental support, but the Central Bank will also pay attention to excessive credit expansion in the stock market. (Editor: Song Wan-yuan)
Source Link: https://www.rti.org.tw/news?uid=3&pid=215366
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