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Taiwan: lending & credit regulation

Regulated

Taiwan lending regulated by FSC/CBC; no specific consumer credit license; mortgage rules under CBC

Lead regulator:
Financial Supervisory Commission (FSC)
Key law:
Banking Act; Regulations Governing the Extension of Mortgage Loans by Financial Institutions
Last updated:
2026-07-12

Lending activities in Taiwan are primarily regulated by the Financial Supervisory Commission (FSC) and the Central Bank of the Republic of China (CBC). The FSC oversees the prudential supervision of financial institutions, while the CBC issues specific operational regulations for mortgage lending.

There is no distinct standalone licensing regime for general consumer credit or unsecured lending in the provided documents. Instead, lending is conducted by licensed financial institutions under the Banking Act and related FSC directives, with specific constraints on mortgage lending detailed in CBC regulations.

Recent regulatory focus includes strengthening SME lending through phased plans and maintaining operational continuity during natural disasters. Mortgage lending is strictly governed by regulations that have been amended as recently as 2024, covering high-priced housing and land loans.

Who regulates

  • Financial Supervisory Commission (FSC)

    Primary prudential supervisor of banks and financial institutions; issues directives on lending plans and operational continuity.

    [1][2]

  • Central Bank of the Republic of China (CBC)

    Issues specific regulations governing the extension of mortgage loans, housing loans, and land loans by financial institutions.

    [3][4][5]

Core laws & rules

  • Regulations Governing the Extension of Mortgage Loans by Financial Institutions (2024)

    Establishes the legal framework for mortgage lending practices, including amendments effective September 20, 2024. It governs how financial institutions extend mortgage loans.

    [3]

  • Regulations Governing High-Priced Housing Loans Extended by Financial Institutions (2016)

    Establishes a regulatory framework for specific mortgage lending activities, particularly for high-priced housing loans.

    [6]

Licensing & registration

  • Banking License

    Lending is conducted by licensed financial institutions. The FSC oversees the approval and supervision of these institutions. No specific 'consumer credit' license category is identified in the provided documents.

    [2]

Restrictions & warnings

  • Mortgage lending is subject to specific regulations including Loan-to-Value (LTV) ratios and adjustments for land loan renewals. High-priced housing loans have dedicated regulatory frameworks.

    [7][6]

  • Banks are required to strengthen SME lending under risk control principles as part of the Twenty-First Phase of the Plan for Domestic Banks to Strengthen SME Lending.

    [2]

Direction of travel

  • Regulatory direction emphasizes continued support for SME lending and operational resilience during natural disasters. Mortgage regulations remain active and subject to periodic amendment.

    [1][2]

Sources

  1. Financial Assistance Measures in Response to Typhoon Pabuk · 2026-07-09
  2. 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
  3. Regulations Governing the Extension of Mortgage Loans by Financial Institutions · 2024-09-19
  4. Regulations Governing the Extension of Mortgage Loans by Financial Institutions · 2024-06-13
  5. Regulations Governing the Extension of Mortgage Loans by Financial Institutions · 2026-03-19
  6. Regulations Governing High-Priced Housing Loans Extended by Financial Institutions · 2016-03-24
  7. Interpretations of the Adjustment Period for Land Loan Renewal Cases to Comply with Loan-to-Value Ratio · 2016-03-24

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This guide is compiled automatically from 7 primary-source documents published by Taiwan's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.