Premier pushes banks to approve SME loans
By Chi-hao James Lo, The China Post
March 21, 2014, 12:02 am TWN
TAIPEI, Taiwan -- Premier Jiang Yi-huah (江宜樺) encouraged banks to approve loan applications for small- and medium-sized enterprises (SMEs) yesterday, saying that aiding the core of Taiwanese enterprises is the way to increase economic growth.
Following the "Assisting Small and Medium Enterprises in Obtaining Funding Report" (協助中小企業資金取得) presented by the Financial Supervisory Commission (FSC, 金融監督管理委員會) at the Executive Yuan, Jiang said that the "SME Loans Project Plan" (中小企業專案放款計畫) implemented by the FSC has seen steady success, proven by the annual increase in loan balance surplus. Loans approved in 2013 have increased by NT$313.4 billion more than 2012, with NT$240 billion more projected for 2014.
The "Small and Medium Enterprises Credit Guarantee Fund" (中小企業信用保證基金) regulated by the Ministry of Economic Affairs (MOEA) has covered over 390,000 cases with a coverage balance as high as roughly NT$1.056 trillion, securing SMEs an estimated NT$1.3 trillion in financing.
Jiang went on to ask the FSC to encourage banks to increase the approval rates of loans applied by SMEs under the premise of appropriate risk control. SMEs, said Jiang, make up 98 percent of Taiwanese enterprises, providing 78 percent of the nation's overall job creation opportunities, and as such, serve as an important foundation for social stability and sustaining economical development.
Hence, advised Jiang, it will be to the benefit of SMEs, banks and national economic development alike that the MOEA collaborate with the FSC to supervise banks in developing innovative services and programs that will aid SMEs to thrive further in the future.