Taiwanese lenders checking more closely borrowers' applications and may deny loans to curb speculation.
To rein in the housing bubble in Taiwan, F.N. Perng, governor of Taiwan`s central bank, recently instructed domestic banks to deny lending to those suspected of speculation.
As such, government-linked banks, including Land Bank of China, Taiwan Cooperative Bank, First Commercial Bank, Bank of Taiwan, Hua Nan Commercial Bank and Chang Hwa Bank, are all checking more closely borrowers' applications and may deny loans to holders of dummy accounts.
Land Bank is now Taiwan's largest mortgage lender with loans outstanding at US$17.73 billion, and is reportedly checking vigilantly applicants to minimise further property speculation. Home prices, according to a TV show aired in Taipei recently, are higher relative to those in other nations. First Commercial and Chang Hwa both will strictly check creditworthiness of applicants, with the latter to lend to repeat mortgage applicants in the past year up to half of market prices.
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