Cracking Down on Housing: Central Bank Tightens Grip with Credit Limit Hike and Stricter Ownership Rules
2024/9/19 20:19
(Updated at 9/19 21:51)
deposit requirement ratio and selective credit controls will be implemented from the 20th. Photo shows central bank president Yang Jinlong (standing left) briefing the media after the meeting. Photo taken by Central News Agency reporter Zhao Shixun on September 19, 113″ srcset=”https://imgcdn.cna.com.tw/www/WebPhotos/800/20240919/1200x800_wmky_222439993709_202409190144000000.jpg 414w, https://imgcdn.cna.com.tw/www/WebPhotos/1024/20240919/1200x800_wmky_222439993709_202409190144000000.jpg 1024w”/>
Central Bank Raises Deposit Requirement Ratio and Introduces Selective Credit Controls
(Central News Agency reporter Zhang Yi, Taipei, 19th) The housing market is booming, and the central bank announced today that it will raise the deposit requirement ratio and launch the seventh wave of selective credit controls. The head of the bank’s treasury clearly stated that the central bank “has given a heavy blow” in the future, banks will have less loan funds, and at the same time, there will be more home buyers. Be cautious and watch as the housing market is bound to return to tight self-employment in the second half of the year.
Since the beginning of this year, the housing market has grown and buying momentum has heated up. Today the central bank held its third quarterly board of governors meeting and decided to suspend interest rates for the second time in a row, but increased deposits. The required rate was 1 point (0.25 percentage point) and introduced the seventh wave of selective credit controls.
The Public Bank’s treasury chief clearly stated that this time the deposit requirement ratio and selective credit control are two-pronged, and the central bank is “hitting hard with both punches” showing its determination.
The head of the bank’s treasury said that if the central bank increases the deposit reserve ratio, the funds that the National Bank can use will shrink, which means that there will be less loanable funds in the future, and those who want to negotiate construction financing may face high interest rates and other situations. should be “full”.
The head of the bank’s treasury pointed out that the central bank has introduced the seventh wave of selective credit control, which is the first home purchase loan for those who already have a house in their name, there will be no additional period. The maximum percentage of second home purchase loans will be reduced in 5 steps As these make the home-buying community more cautious in their expectations, the housing market is bound to return to tighter self-possession. . At the same time, a reduction in the maximum loan percentage for remaining homes is expected to impact less robust small builders.
In response to the change in market value and volume, the head of the bank treasury said frankly that since the banks currently have cases of approved and inappropriate housing loans or construction financing, some national banks even estimate that they will not be fully digested. Until the end of this year, the impact of this wave of central banks on market prices and volumes will not be clearly reflected until next year.
The seventh wave of selective credit regulation announced by the central bank has four main measures. Second, the maximum loan percentage for the purchase of a second home by a natural person has been reduced from 60% to 50% and the scope of implementation has been expanded to include the entire country.
Third, the maximum interest rate on corporate loans for residential purchases, loans for natural persons to purchase high-value residences, and loans to third households (inclusive) and above has been reduced from 40% to 30%. Fourth, the maximum interest rate on surplus housing loans has been reduced from 40% to 30%.