Taiwan Bars Limits Under Act 72-2 to Boost Housing Loans
The Taiwan Financial Supervisory Commission (FSC) held a closed-door meeting with major banks on September 1, 2025. It ordered banks to stop using Article 72-2 of the Banking Act to limit or delay mortgages. The new rules aim to ease Taiwan housing loans pressure amid recent tight credit. The FSC also banned tying life insurance sales to loan approvals. The regulator urged banks to expand deposit bases rather than tighten lending. Public banks face a deposit shortfall and heavy policy-lending burdens from government programs like “New Qing’an Loans.” The FSC will strengthen inspections and publish regular data on real estate lending ratios and policy loan shares. Bank insiders say the measures may have limited impact without changes to legal lending caps or central bank policy support. With scarce liquidity, actual mortgage supply is unlikely to rise significantly in the short term. Traders and investors closely watch Taiwan housing loans policies, as any relief could influence banks’ capital flows and local real estate market sentiment.
Neutral
The FSC’s decision targets domestic mortgage rules and has limited direct implications for crypto markets. In past instances, easing housing loan restrictions in Taiwan improved liquidity in local banks but did not trigger significant moves in digital asset trading. Crypto traders typically react more strongly to monetary policy shifts by central banks than to sector-specific lending guidelines. While expanded mortgage credit may free up some disposable funds, the effect on crypto investment sentiment is likely marginal. Over the short term, liquidity changes may slightly support risk assets, but long-term cryptocurrency valuations depend on broader macro factors such as global monetary easing and regulatory developments. Therefore, the impact on crypto trading is assessed as neutral.