Reported 7 months ago
Central Bank Governor Yang Chin-lung stated that the focus is on whether the housing market affects financial stability, with indicators being banks' loan-to-deposit ratios and stress tests. Even in severe scenarios like a 3% interest rate hike and 40% decrease in house prices, national banks are equipped to handle operations comfortably. The bank also watches for excessive real estate credit concentrations to ensure stability, as structural changes, like the rise in semiconductor industry in Taiwan, can influence housing prices, although speculation is also a concern. Lessons from the US subprime crisis remind the importance of assessing banks' capital adequacy amid market changes to maintain financial stability.
Source: YAHOO