To ease the loan repayment difficulties of those affected by the COVID-19 outbreak, the FSC Taiwan announced that the Bankers Association of the Republic of China (BAROC) instructs the member banks to institute a debt workout mechanism for borrowers that have problems repaying loans due to the impact of the outbreak. FSC Taiwan also asked BAROC to collect information on the loan products and debt workout measures provided by all banks. FSC Taiwan issued an administrative letter regarding loans to small and medium sized enterprises (including small-scale business operators). Additionally, FSC Taiwan notified entities about the development of a simple scoring form to replace the financial statements and 401 reports to assist small-scale business operators amid COVID-19 outbreak.
In the light of the economic impact due to COVID-19, the government has proposed a number of bailout and revitalization plans. However, small-scale business operators were not able to benefit from these measures because of the lack of financial statements (or 401 statements). Therefore, a simple scoring form has been developed to help small-scale business operators in applying for loans through a simplified process. In addition, to encourage banks, FSC Taiwan has developed incentive measures to reduce the ratio of credit reserve allowance for bad debts from 1.0% to 0.5%.
- Press Release on Easing Loan Repayment Terms
- Press Release on Simplified Loan Application Program (in Chinese)
- Letter on Loans to Small and Medium Sized Enterprises (in Chinese)
Keywords: Asia Pacific, Taiwan, Banking, COVID-19, Credit Risk, SME, Regulatory Capital, NPL, Loan Moratorium, Loan-loss Provisioning, FSC Taiwan
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.