Economy looks solid, central bank says
By Crystal Hsu / Staff reporter
The economy remains solid, despite an escalating COVID-19 outbreak that appears thus far to have no impact on manufacturing activity, the backbone of exports, central bank Governor Yang Chin-long (楊金龍) said yesterday.
Yang made the remarks during an online news conference in which he announced the raising of the cap on special relief loans to small and medium-sized enterprises (SMEs) affected by the outbreak by NT$100 billion (US$3.61 billion) to NT$400 billion.
As the outbreak this time is more serious than one last year based on the number of confirmed cases, more loans are needed to help SMEs cope with cash woes, Yang said.
Central bank urges lenders to reduce risk
PROPERTY PRICES: Some lenders have offered interest rates that were below market average, which could threaten the financial market’s stability, the central bank said
By Crystal Hsu / Staff reporter
The central bank on Friday met with 36 domestic lenders, asking them to comply with risk management requirements and refrain from cutthroat competition in mortgage operations.
The plea came after housing and construction lending continued to grow last quarter despite two waves of selective credit controls intended to cool the local property market.
The central bank said it has since January been inspecting mortgage operations and found that most lenders abide by risk management rules.
Housing, construction loans continue to rise
By Kao Shih-ching / Staff reporter
Despite credit-tightening moves by the central bank, housing and construction loans climbed to NT$8.16 trillion (US$292.4 billion) and NT$2.87 trillion respectively in March, extending the previous month’s uptrend, data compiled by the Financial Supervisory Commission showed on Thursday.
Housing loans in March increased by NT$54.4 billion, or 0.6 percent, from a month earlier, easily outpacing February’s increase of NT$25.3, or 0.3 percent, the data showed.
Construction loans, an indicator of real-estate developers’ confidence in the sector, also grew at a faster pace in March, increasing by NT$23.2 billion, or 0.8 percent, compared with February’s gain of NT$18.1 billion, the data showed.
Minutes warn of inflation risks
CENTRAL BANK MEETING: One director said that a survey on consumer finances should encompass household data so the bank could better understand their state
By Crystal Hsu / Staff reporter
Several central bank board members warned about inflation risks and called for the issue to be closely monitored, while they supported a hold on rates, the minutes from March’s central bank policy meeting showed.
Several board directors, while agreeing to keep rates unchanged, voiced concern over expectations that inflation would escalate and the exchange rate of the New Taiwan dollar, said the minutes, which were released on Thursday.
The nation’s housing loans and construction financing last month increased month-on-month and year-on-year, despite two waves of credit controls that were aimed at cooling the market, data compiled by the central bank showed yesterday.
Home loans rose 9.25 percent year-on-year to a 14-year high of NT$8.19 trillion (US$292.93 billion), while construction lending grew 17.79 percent to NT$2.54 trillion, the central bank said in a statement, adding that more time might be needed for credit controls to work.
The mortgage balance increased by NT$55.6 billion month-on-month, accelerating from a gain of NT$26.19 billion in February and the highest in 49 months, the central