FSC to Allow Foreign Bonds as Collateral for Broker Loans, Limited to Investment Grade
The Financial Supervisory Commission plans to allow investment-grade foreign bonds to be used as collateral for non-purpose loans by securities firms, expected to launch in Q3 2026.
📋 Article Processing Timeline
- 📰 Published: April 14, 2026 at 22:55
- 🔍 Collected: April 14, 2026 at 23:01 (6 min after Published)
- 🤖 AI Analyzed: April 15, 2026 at 16:24 (17h 22m after Collected)
The Financial Supervisory Commission (FSC) announced plans to allow foreign bonds to serve as collateral for securities firms' non-purpose loan business to improve capital flexibility for investors. As of February, the inventory of foreign bonds held through sub-brokerage totaled NT$388.1 billion. Only bonds rated investment-grade by approved agencies will be eligible, with a loan-to-value ratio set at 60%. The FSC expects the new measure to take effect in the third quarter of 2026 following a 60-day notice period and system adjustments.
FAQ
What is the loan ratio for using foreign bonds as collateral?
The loan-to-value (LTV) ratio is set at 60%.