News / Taiwan / cnyes
Taiwan Cooperative Financial Holding Sees Housing Market Cooling, Tightens Construction Lending
Finance · Major Banks · cnyes · 2026-08-31
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Taiwan Cooperative Financial Holding expects a cooling housing market in H2 due to central bank policies, while maintaining strict risk controls on construction loans.
What Happened
Market Outlook: Taiwan Cooperative Financial Holding (TCFHC) anticipates a trend of shrinking transaction volumes and price consolidation in the domestic housing market for the second half of the year. This shift is largely attributed to the central bank's selective credit controls and proactive risk management by financial institutions.
Mortgage Performance: As of the end of August, TCFHC's mortgage balance reached approximately NT$895 billion, reflecting a 1.5% growth compared to the end of last year. While the 'New Youth Housing Loan' policy has contributed to growth, monthly disbursement levels have returned to normal after peaking in July.
Risk Management: The bank confirmed that there are no instances of high-leverage 'quadruple' or 'triple' loan structures among its clients. Customers holding both mortgage and personal loans account for only 2% of the portfolio, indicating that overall credit risk remains well-contained.
Lending Strategy: Due to high concentration in real estate lending, the bank is adopting a strategy of gradually reducing construction and land development loans. Future lending will prioritize urban renewal and high-quality developers, with interest rates and client selection adjusted dynamically to manage exposure.