The outcome of this policy is usually overlending by the banks concerned, creating the potential for a financial crises. Third, the KMT lets local factions profit from land and stock market speculation through their right to make adjustments to zoning regulations and their control of public construction operations. Inviting organized crime participation in public construction projects is a further source of income for local political factions. Fourth, the KMT has ignored the existence of underground industries such as the sex and gaming sectors, allowing local authorities to profit from bribes that these illegal businesses pay to stay in operation. Fifth, to resort to electoral intimidation or vote-buying to ensure solid support from local areas.
Gangsters play a pivotal role in ensuring that votes go to the ruling party during elections.
Sixth, the introduction of people with organized crime backgrounds or criminal records into the political arena. This has not only brought Taiwan's legislative branches at both the local and central levels into disrepute, but also endangers social stability and economic development. Through multiple channels of exchange, local factions acquire considerable economic and financial resources from the ruling party. In return, the KMT earns its political support from localities. They also serve as agents for the collection of ballots for KMT candidates.