Securities Firms Hope for Relaxed Credit Limits, Peng Jin-long: Must Consider Market Development and Risk
Taiwan's Financial Supervisory Commission (FSC) Chairman Peng Jin-long indicated that while considering the request from securities firms to raise the total credit limit from 4 to 6 times net worth, a review of the system is possible, but market development and risk management must be balanced.
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- 📰 Published: May 7, 2026 at 12:19
- 🔍 Collected: May 7, 2026 at 12:31 (12 min after Published)
- 🤖 AI Analyzed: May 7, 2026 at 22:17 (9h 45m after Collected)
Central News Agency
(Central News Agency reporter Su Szu-yun, Taipei, 7th) As the Taiwan stock market surged to 40,000 points, legislators paid attention to the Securities Association's proposal to increase the total credit limit from not exceeding 4 times net worth to 6 times. FSC Chairman Peng Jin-long stated that the 4-times limit was set a long time ago and can be reviewed more meticulously; however, from the perspective of the overall market, securities firms indeed have credit limits, and as market regulators, they must also consider market development and risk control.
The Legislative Yuan's Finance Committee today invited FSC Chairman Peng Jin-long to deliver a special report on "The Promotion and Outlook of Financial Technology Development Business" and to be questioned.
DPP Legislator Wu Ping-jui pointed out that the Securities Association first filed a petition, hoping to raise the total amount of securities financing from not exceeding 4 times net worth to 6 times, and the Securities and Futures Bureau also mentioned that the direction is correct, inquiring about the current progress of the study. KMT Legislator Lai Shyh-bao also expressed concern that some operators told customers to prohibit new loans for old ones, and stock pledges were even limited to NT$100,000 per day, asking about the FSC's administrative guidance on this.
According to current FSC regulations, the total credit limit for securities firms, combining margin financing, securities lending, and unrestricted purpose loans, cannot exceed 4 times their net worth; however, some securities firms have told customers that they have no credit limit, which has attracted attention.
Peng Jin-long pointed out that the overall regulation is 4 times net worth, and the current industry data shows a lending ratio of about 1.59 times net worth. Some securities firms may be close to 3 times, but currently, no firm has reached the 4-times limit. Operators naturally hope for a larger business scope, but as market regulators, they must also consider market development and risk control.
Peng Jin-long stated that the system can be reviewed, but currently, securities firms indeed have room for credit limits. However, the 4-times limit was set a long time ago, and it can be discussed more meticulously what can be done within the 4-times limit, and a review can be made to balance market safety and development. (Edited by Chang Liang-chih) 1150507
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(Central News Agency reporter Su Szu-yun, Taipei, 7th) As the Taiwan stock market surged to 40,000 points, legislators paid attention to the Securities Association's proposal to increase the total credit limit from not exceeding 4 times net worth to 6 times. FSC Chairman Peng Jin-long stated that the 4-times limit was set a long time ago and can be reviewed more meticulously; however, from the perspective of the overall market, securities firms indeed have credit limits, and as market regulators, they must also consider market development and risk control.
The Legislative Yuan's Finance Committee today invited FSC Chairman Peng Jin-long to deliver a special report on "The Promotion and Outlook of Financial Technology Development Business" and to be questioned.
DPP Legislator Wu Ping-jui pointed out that the Securities Association first filed a petition, hoping to raise the total amount of securities financing from not exceeding 4 times net worth to 6 times, and the Securities and Futures Bureau also mentioned that the direction is correct, inquiring about the current progress of the study. KMT Legislator Lai Shyh-bao also expressed concern that some operators told customers to prohibit new loans for old ones, and stock pledges were even limited to NT$100,000 per day, asking about the FSC's administrative guidance on this.
According to current FSC regulations, the total credit limit for securities firms, combining margin financing, securities lending, and unrestricted purpose loans, cannot exceed 4 times their net worth; however, some securities firms have told customers that they have no credit limit, which has attracted attention.
Peng Jin-long pointed out that the overall regulation is 4 times net worth, and the current industry data shows a lending ratio of about 1.59 times net worth. Some securities firms may be close to 3 times, but currently, no firm has reached the 4-times limit. Operators naturally hope for a larger business scope, but as market regulators, they must also consider market development and risk control.
Peng Jin-long stated that the system can be reviewed, but currently, securities firms indeed have room for credit limits. However, the 4-times limit was set a long time ago, and it can be discussed more meticulously what can be done within the 4-times limit, and a review can be made to balance market safety and development. (Edited by Chang Liang-chih) 1150507
Choose to stand with facts, every sponsorship you make is a force to protect press freedom.
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The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.