Stock Market Frenzy! How Many in Taiwan Are Using 'Four Loans in One Household' to Invest? FSC Reveals Shocking Data

As Taiwan's stock market continues to thrive, it has attracted a surge of public participation in stock investment. Recently, reports have emerged of investors simultaneously leveraging mortgage loans, auto loans, personal loans, and stock margin financing to raise capital, creating a phenomenon known as 'Four Loans in One Household.' This has raised concerns about potential credit risks and chain reactions of defaults within financial institutions.

In response, the Financial Supervisory Commission (FSC) stated that, based on data collected from several banks, the proportion of customers holding multiple loans is extremely low—classified as a 'low single-digit percentage.' The FSC assessed that the overall credit risk across domestic banks remains within an acceptable and controllable range. It emphasized ongoing monitoring of loan growth and non-performing loan (NPL) ratios across banks.

Could Stock Market Frenzy Trigger a Credit Crisis via 'Four Loans in One Household'? FSC Closely Watches Loan Growth and NPL Ratios: Multiple Borrowers at 'Low Single Digits'

Wang Yun-chung, Deputy Director of the FSC's Banking Bureau, highlighted two core indicators for assessing financial system risks: whether business growth is abnormal and whether risk indicators show significant changes. The FSC continuously monitors domestic banks' growth in mortgage, personal, and stock-collateralized loans, as well as NPL ratios, through regular reports and individual bank consultations. Any anomalies will be immediately flagged for intensified supervision and corrective measures.

Wang explained that the NPL ratio of domestic banks has remained stable between 0.14% and 0.16% from last year to this year, with no significant fluctuations, indicating that overall credit risk remains within manageable levels. He added that when banks issue personal financial loans, secured loans still dominate, and institutions strictly assess borrowers' repayment capacity, collateral quality, and post-loan management mechanisms, maintaining an overall cautious lending approach.

Multiple Borrowers Are Extremely Rare! FSC Upgrades Defense with 'Two-Way Exchange' of Credit Information

Regarding widespread concerns over leveraged 'Four Loans in One Household' strategies, the FSC specifically surveyed several banks on individuals holding four or more loan types—mortgage, personal loan, auto loan, and stock collateral financing. Statistics show that such multi-loan holders represent an extremely low proportion, described as a 'low single-digit percentage.' Moreover, banks have already established enhanced monitoring mechanisms for multiple borrowers and those with high debt-to-income ratios (DBR).

On the specifics of personal working capital loans, Wang noted that this category includes secured financial products like mortgage and stock-collateralized loans, as well as unsecured personal loans. To further strengthen risk controls, the FSC is currently planning to upgrade the information-sharing services of the Joint Credit Information Center (JCIC).

Previously, cross-industry data exchange at the JCIC was limited to basic negative information (e.g., whether a customer has a history of loan delinquency, without detailed specifics). The FSC is now consulting banks on their data needs, aiming to establish a more comprehensive cross-industry 'two-way exchange mechanism' as soon as possible, enabling financial institutions to accurately assess customers' overall debt burden and real credit risk.