SFC officials said that there was also a danger brokers and finance firms may not be able to extend additional stock loans in the future. Therefore, the SFC must consider from where future sources of credit will come, officials said. SFC officials said that in many foreign markets such as the US, banks are allowed to provide loans for the purpose of stock investing. Because increased competition would lead to lower interest rates, the SFC is considering allowing commercial banks and other financial institutions to underwrite loans for stock investing. But first it must win approval from the Ministry of Finance and the central bank.
Analysts say that now is a good time to address the issue of margin loans.
Since the banking industry has been highly competitive in recent years, any move that would help banks would also help the new finance minister. This story has been viewed 382 times. The Taipei Times. All rights reserved.