Securities Firms Exhausting Quotas and Restricting Lending Services? FSC: No Firms Have Reached Upper Limit
Despite market rumors that some securities firms have suspended lending services due to exhausted quotas, the Financial Supervisory Commission announced that no firms have reached the prescribed limit, with the market average being 159% against the 400% limit.
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- 📰 Published: April 30, 2026 at 20:51
- 🔍 Collected: April 30, 2026 at 21:01 (10 min after Published)
- 🤖 AI Analyzed: May 2, 2026 at 07:22 (34h 20m after Collected)
TAIPEI (CNA) -- Market rumors circulated that some securities firms had exhausted their quotas for unrestricted purpose loans and temporarily suspended acceptance, drawing attention. The Financial Supervisory Commission (FSC) stated today that no securities firm has reached the prescribed upper limit. The current average total lending amount for securities firms, as a multiple of net worth, is 159% for the market, which is still a significant distance from the current prescribed upper limit of 400%. If firms adjust their operations, it should be based on their own risk considerations.
The Taiwan stock market has been strong recently, hitting new highs for several consecutive days, with a surge of 7203.64 points in April, marking the strongest monthly gain in history. Market rumors that some securities firms had exhausted their quotas for unrestricted purpose loans and temporarily suspended acceptance sparked discussions about whether the Taiwan stock market was overheating.
Huang Hou-ming, Deputy Director-General of the Securities and Futures Bureau of the FSC, stated at a regular press conference that the FSC regulates the overall financing situation of securities firms and does not impose specific restrictions on unrestricted purpose loans. According to current regulations, the total lending amount, which is the sum of margin trading loans, securities business loans, and unrestricted purpose loans, must not exceed four times the net worth of the securities firm.
Huang Hou-ming explained that a total of 34 securities firms currently conduct lending services, meaning they lend money to investors. As of April 28, the total lending amount for the three types of businesses, as a multiple of net worth, averaged 159% across the entire market, which is still a significant distance from the prescribed 400% limit, and currently no securities firm has reached the 400% upper limit.
Huang Hou-ming also said that the Securities Dealers Association has suggested relaxing the regulations on the "total lending amount as a multiple of net worth" and the "ratio of securities firms' liabilities to net worth." The Taiwan Stock Exchange is currently studying this based on market risk considerations, and once the exchange presents its research results, there will be corresponding配套 measures. The FSC will also solicit opinions from various parties after receiving the results.
Regarding external concerns that some securities firms are restricting clients from new lending services, Huang Hou-ming explained that this is based on the firms' own risk considerations and is not an adjustment due to regulatory restrictions.
According to FSC statistics, as of the end of March, the price-to-earnings ratio of the Taiwan stock market was 24.18 times. From the beginning of this year to the end of April, the Taiwan stock market rose by 34.4%, compared to a 45% rise in the US Philadelphia Semiconductor Index and a 57.46% rise in South Korea, placing the Taiwan stock market between major international stock markets. (Editor: Yang Lan-hsuan) 2026/04/30
The Taiwan stock market has been strong recently, hitting new highs for several consecutive days, with a surge of 7203.64 points in April, marking the strongest monthly gain in history. Market rumors that some securities firms had exhausted their quotas for unrestricted purpose loans and temporarily suspended acceptance sparked discussions about whether the Taiwan stock market was overheating.
Huang Hou-ming, Deputy Director-General of the Securities and Futures Bureau of the FSC, stated at a regular press conference that the FSC regulates the overall financing situation of securities firms and does not impose specific restrictions on unrestricted purpose loans. According to current regulations, the total lending amount, which is the sum of margin trading loans, securities business loans, and unrestricted purpose loans, must not exceed four times the net worth of the securities firm.
Huang Hou-ming explained that a total of 34 securities firms currently conduct lending services, meaning they lend money to investors. As of April 28, the total lending amount for the three types of businesses, as a multiple of net worth, averaged 159% across the entire market, which is still a significant distance from the prescribed 400% limit, and currently no securities firm has reached the 400% upper limit.
Huang Hou-ming also said that the Securities Dealers Association has suggested relaxing the regulations on the "total lending amount as a multiple of net worth" and the "ratio of securities firms' liabilities to net worth." The Taiwan Stock Exchange is currently studying this based on market risk considerations, and once the exchange presents its research results, there will be corresponding配套 measures. The FSC will also solicit opinions from various parties after receiving the results.
Regarding external concerns that some securities firms are restricting clients from new lending services, Huang Hou-ming explained that this is based on the firms' own risk considerations and is not an adjustment due to regulatory restrictions.
According to FSC statistics, as of the end of March, the price-to-earnings ratio of the Taiwan stock market was 24.18 times. From the beginning of this year to the end of April, the Taiwan stock market rose by 34.4%, compared to a 45% rise in the US Philadelphia Semiconductor Index and a 57.46% rise in South Korea, placing the Taiwan stock market between major international stock markets. (Editor: Yang Lan-hsuan) 2026/04/30