Some Securities Firms Report Capital Crunch, Hope for Limit Adjustment; FSC: Taiwan Stock Exchange Discussing
Amidst a booming Taiwan stock market, some securities firms are reportedly facing a capital crunch and hoping for an adjustment to lending limits. The Financial Supervisory Commission (FSC) announced that the Taiwan Stock Exchange is discussing related issues.
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- 📰 Published: April 29, 2026 at 21:55
- 🔍 Collected: April 29, 2026 at 22:01 (5 min after Published)
- 🤖 AI Analyzed: April 30, 2026 at 00:42 (2h 40m after Collected)
Central News Agency
(Central News Agency reporter Su Ssu-yun, Taipei 29th) Media reports indicate that with the booming Taiwan stock market, some securities firms have run out of their quotas for "unrestricted purpose loans" and temporarily suspended acceptance, drawing attention. Industry players have suggested adjusting the upper limit regulations. The Financial Supervisory Commission (FSC) stated today that the Taiwan Stock Exchange formed a working group in April to discuss two issues: securities firms' lending quotas and debt-to-equity ratios, and the FSC will continue to monitor the situation.
According to current regulations, a securities firm's liabilities cannot exceed 6 times its net worth; additionally, the total amount of a securities firm's financing balance, including margin trading, unrestricted purpose loans, and securities business loans, cannot exceed 4 times its net worth.
Media reports indicate that securities firms' unrestricted purpose loans have recently experienced a capital crunch. Securities firms proposed at a recent meeting to raise the current regulation that the financing balance cannot exceed 4 times net worth to 6 times; some securities firms also proposed relaxing the total liabilities from the current 6 times to 8 times net worth.
The FSC responded today that the Taiwan Stock Exchange formed a working group in April to discuss two issues: securities firms' lending quotas and debt-to-equity ratios, and the FSC is continuously monitoring the issues. Overall, securities firms are currently far from reaching the relevant limits, but individual securities firms may have different situations, which still need to be understood.
The Taiwan stock market has been very active recently. Officials pointed out that if the limits are further relaxed, it might lead to market overheating. There are various opinions in the capital market; some believe that leverage should not be further expanded at this stage, while others believe that with an active capital market, securities firms can do more business. The current stage is still collecting opinions and researching, and then gradually consolidating various opinions. (Editor: Chang Liang-chih) 1150429
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(Central News Agency reporter Su Ssu-yun, Taipei 29th) Media reports indicate that with the booming Taiwan stock market, some securities firms have run out of their quotas for "unrestricted purpose loans" and temporarily suspended acceptance, drawing attention. Industry players have suggested adjusting the upper limit regulations. The Financial Supervisory Commission (FSC) stated today that the Taiwan Stock Exchange formed a working group in April to discuss two issues: securities firms' lending quotas and debt-to-equity ratios, and the FSC will continue to monitor the situation.
According to current regulations, a securities firm's liabilities cannot exceed 6 times its net worth; additionally, the total amount of a securities firm's financing balance, including margin trading, unrestricted purpose loans, and securities business loans, cannot exceed 4 times its net worth.
Media reports indicate that securities firms' unrestricted purpose loans have recently experienced a capital crunch. Securities firms proposed at a recent meeting to raise the current regulation that the financing balance cannot exceed 4 times net worth to 6 times; some securities firms also proposed relaxing the total liabilities from the current 6 times to 8 times net worth.
The FSC responded today that the Taiwan Stock Exchange formed a working group in April to discuss two issues: securities firms' lending quotas and debt-to-equity ratios, and the FSC is continuously monitoring the issues. Overall, securities firms are currently far from reaching the relevant limits, but individual securities firms may have different situations, which still need to be understood.
The Taiwan stock market has been very active recently. Officials pointed out that if the limits are further relaxed, it might lead to market overheating. There are various opinions in the capital market; some believe that leverage should not be further expanded at this stage, while others believe that with an active capital market, securities firms can do more business. The current stage is still collecting opinions and researching, and then gradually consolidating various opinions. (Editor: Chang Liang-chih) 1150429
Choose to stand with facts. Every sponsorship you provide is a force to protect press freedom.
Download the Central News Agency "First-hand News" APP to stay updated with the latest news.
The text, images, and audio-visual content on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.