Central bank denies land financing control report

The Commercial Times reported that banks in Taiwan recently received notifications from the central bank requiring that land and construction loans interest rates should be higher than those made to other manufacturing industries and should be at least 2 percent. The central bank also requires banks to loan not higher than 70 percent of the property valuation, according to the newspaper.

The Economic Daily News also reported that central bank officials conducted “moral suasions”to local banks concerning land and construction loans and had notified banks about upcoming investigations on their credit and lending situations.

The central bank's statement stressed that the investigations of banks'credit and lending are routine seasonal check-ups and that the central bank has no plans to monitor or control land and construction financings.

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