Taipei Times
Date: Aug 16, 2018
By: Ted Chen / Staff reporter
A number of smaller lenders are expected to face an additional round of
Financial Supervisory Commission Chairman Wellington Koo talks to reporters in Taipei yesterday. Photo: Wang Meng-lun, Taipei Times
mortgage stress tests and other precautionary measures as their default rates creep up, Financial Supervisory Commission Chairman Wellington Koo (顧立雄) said yesterday.
While banks are required to conduct routine stress tests, several smaller lenders would be required to show that they have the capacity to absorb rising mortgage defaults, Koo said on the sidelines of a forum on corporate governance in Taipei.
Koo made the comment after a number of credit-unions-turned-banks in May logged mortgage default rates exceeding 1 percent.
The commission is to draft uniform parameters for the upcoming mortgage stress test, Koo said, adding that failed lenders would be barred from taking on more home loans and would see their loan loss provisions raised.
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