News / Taiwan / cnyes
Land Bank of Taiwan Sees Construction Loan Decline, Chairman Calls for Regulatory Flexibility
Finance · Major Banks · cnyes · 2026-09-01
Land Bank of Taiwan Chairman Ho Ying-ming reports a decline in construction loans due to central bank curbs and urges flexible construction deadlines.
What Happened
Financial Outlook: Land Bank of Taiwan (LBT) Chairman Ho Ying-ming expects 2026 profits to surpass the previous year's record of NT$20 billion. As a state-owned bank, LBT focuses on capital accumulation and maintaining low non-performing loan ratios to withstand economic volatility.
Policy Role: The bank continues to fulfill its mandate by supporting major infrastructure projects and the government's youth housing loan program. Ho noted that LBT's unique business model requires long-term capital stability to manage the risks associated with multi-decade mortgage products.
Market Trends: Construction and development loan balances have decreased to approximately NT$400 billion due to the central bank's credit controls. Despite a slowdown in land acquisition by developers, the bank's mortgage business remains robust as completed projects transition into individual home loans.
Regulatory Appeal: Chairman Ho urged the government to provide more flexibility regarding the 18-month construction commencement deadline. He argued that such adjustments would help developers avoid liquidity crises and prevent the emergence of unfinished 'zombie' projects, thereby stabilizing the real estate market.