Reported about 1 year ago
Senior reporter Li Jinqi stated on June 21, 2024, at 4:15 AM that General Manager Li Jiashang of First Bank mentioned today that the mortgage business is estimated to grow by 8%-10% this year. However, regulatory authorities have started implementing new improvement measures for youth-friendly mortgage loans, and the central bank has introduced new selective credit control measures for mortgages. Predicting that in the second half of the year, the government will definitely introduce comprehensive housing market control measures, the housing market may see stable transaction volumes, high price fluctuations, or even a decrease in transaction volume due to disparities in perceptions between buyers and sellers. Li Jiashang addressed the recent concerns about youth-friendly mortgage loans being used for speculation by pointing out that regulatory authorities have good intentions. He noted that at First Bank, 73% of applicants for these loans are under 39, showing a decrease in the age group, which has helped young people purchase homes for self-occupation. These loans account for 42% of First Bank's total mortgages, showing an increase. Li Jiashang also mentioned the bank's efforts to prevent ghost transactions or renting out properties after purchase, with preliminary conclusions being discussed with regulatory authorities. Regarding whether the central bank will continue to raise interest rates, there are currently no signs pointing to that. Regarding the tightening of the maximum loan-to-value ratio for second-home mortgages by the central bank, Li Jiashang stated that it does not have a significant impact on First Bank, as they primarily focus on first-time buyer loans, with second-home loans accounting for less than 3%. For overseas branches, the bank is focusing on Japan next year, aiming to establish a branch in Osaka in the third quarter if successful, similar to their office in California, USA. The choice of Osaka was due to the favorable business opportunities in the Kansai region, especially with the World Expo next year. The overseas branches have contributed around 20% to First Bank's overall profits this year, aiming to increase it to 30%. Regarding the outlook for the Taiwan economy, Li Jiashang expressed optimism as the European and American economies are starting to recover, showing expansion trends. He believes the second half of the year will be optimistic, with a GDP growth rate estimated between 3.5% and 4% this year.
Source: YAHOO