Taiwan's Land Bank to Cut Mortgage Lending by 10% in 2011
2011/03/11 | By Judy LiTaipei, March 11, 2011 (CENS)--To comply with official policy to cool the overheated mortgage lending market in Taiwan, the Land Bank of Taiwan, the major home loan provider, will cut mortgage lending by 10% or NT$60 billion (US$1.94 billion) this year.
The Land Bank's outstanding mortgage portfolio totals NT$600 billion (US$19.4 billion), for 36% of its total outstanding loans of NT$1.7 trillion (US$54.84 billion). Once the total will have been reduced to NT$60 billion (US$1.94 billion) by the end of this year as expected, then such proportion will shrink to 31%.
Also the Land Bank will adjust the ratio of corporate-to-consumer loans to 55%:45% from the current 50%:50%.
The Bank of Taiwan (BOT) and Taiwan Cooperative Bank are also major, government-linked mortgage lenders on the island, so will likely follow suit to tighten mortgage lending.
Property-related Loans by Gov't-linked Banks (2010) Unit: NT$B | |||
Bank | BOT | Land Bank | Taiwan Cooperative |
Total outstanding loans | 2,000 | 1,700 | 1,780 |
Outstanding home loans | 440 | 600 | 560 |
Percentage | 22% | 36% | 32% |
Construction loans | 73 | 270 | 120 |
Percentage | 3.5% | 15% | 6.7% |