Regulatory AlertsTaiwan: lending & credit regulation
RestrictedLending restricted to licensed financial institutions; non-bank lending unregulated but prohibited
- Lead regulator
- Financial Supervisory Commission (FSC)
- Also involved
- Central Bank (operational guidelines) · FSC (supervision)
- Core law
- Banking Act (1989)
- Entry capital
- —
- Approval timeline
- —
- Customer assets
- Licensed financial institutions only
- Data protection
- Personal Data Protection Act · Ministry of Justice
- Sandbox
- —
Taiwan strictly prohibits non-bank entities from engaging in lending activities. The Banking Act reserves credit intermediation exclusively for licensed banks and credit cooperatives. The FSC supervises these institutions, while the Central Bank issues operational guidelines for mortgage and SME lending. There is no licensing pathway for fintech or non-bank lenders.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Consumer lending | Prohibited Non-bank lending is illegal under the Banking Act | — | — | — |
| SME / commercial lending | Prohibited[1] Reserved for licensed banks and credit cooperatives | — | — | — |
| Microfinance | Prohibited Non-bank micro-lending is not permitted | — | — | — |
| Buy-now-pay-later | Prohibited Considered lending; requires banking license | — | — | — |
| P2P lending platform | Prohibited P2P lending is illegal in Taiwan | — | — | — |
| Credit bureau / scoring | Uncertainverify with regulator Scoring services may be allowed if not lending | — | — | — |
| Debt collection | Uncertainverify with regulator Unclear if separate license needed for non-bank | — | — | — |
New — what changed recently
- 2026-06-17Twenty-First Phase of the Plan for Domestic Banks to Strengthen SME Lending — FSC mandated banks to continue strengthening SME loans under risk control principles.[1]
- 2024-09-19Regulations Governing the Extension of Mortgage Loans by Financial Institutions — Amendments to mortgage lending regulations became effective.[2]
- 2024-06-13Regulations Governing the Extension of Mortgage Loans by Financial Institutions — Amendments to mortgage lending regulations became effective.[3]
Market-entry checklist
- 1Obtain banking licenseApply to FSC for a banking license under the Banking Act to legally lend.
- 2Establish local entityIncorporate a local bank or credit cooperative in Taiwan.
- 3Meet capital requirementsSatisfy statutory minimum capital for the specific banking license type.
- 4Comply with FSC supervisionAdhere to FSC directives on risk management and operational continuity.
Sources
- Submission of the Twenty-First Phase of the Plan for Domestic Banks to Strengthen SME Lending and Comparison Table of Amended Articles · 2026-06-17
- Regulations Governing the Extension of Mortgage Loans by Financial Institutions · 2024-09-19
- Regulations Governing the Extension of Mortgage Loans by Financial Institutions · 2024-06-13