The CBC's targeted macro-prudential measures on real estate lending
In view of banks’ credit portfolios being over-concentrated on real estate loans, specifically newly extended housing loans in metropolitan Taipei during the second half of 2009, which undermined banks’ credit risk management, the CBC conducted moral suasion in October 2009 to urge banks to extend real estate loans in a more prudent manner. Furthermore, the CBC has introduced a series of targeted prudential measures on real estate loans since June 2010, aiming to further enhance banks’ credit risk management.
In August 2015, the CBC relaxed several measures related to housing loans, given that several targeted macro-prudential measures on real estate loans have proven effective. In March 2016, the CBC further repealed most rules imposed on real estate loans, except for high-priced housing loans, and urged financial institutions to strengthen self-discipline on credit risk management of real estate lending. In 2020, in view of faster growth in real estate loans driven by a soaring housing market, the CBC amended targeted prudential measures on real estate lending in December so as to prevent banks’ credit from overly flowing into the housing market (Table). In the future, with the aim of promoting financial stability, the CBC will continue to monitor the developments in the housing market, and review the effectiveness of targeted prudential measures so as to adjust related measures in a timely manner.
Attachment(s) for download
- 附表 本行採行不動產總體審慎措施(英)_finalPDF