New System Takes Effect on the 31st, Filling Cross-Market Gap
The FSC confirmed on the 29th that the new cross-industry credit inquiry system for banks and brokerages will take effect on October 31, with brokerages to start inquiries from November 2, the first business day. The two sides will obtain more complete credit information via the Joint Joint Credit Information Center and the TWSE system to assess clients' repayment capacity and investment leverage. The FSC stressed the new system only expands the scope of inquiry data and does not impose separate lending limits. Although cross-industry inquiry channels already existed, they focused on negative records such as defaults and delinquencies, and firms could not grasp actual borrowing scale if clients paid normally; the new system fills that gap.
Brokerages Must Check Bank Credit When Threshold Is Met
For brokerages, when credit extended to an individual natural person reaching NT$300 million or 1% of the brokerage's net worth, whichever is higher, the brokerage must inquire into the client's bank credit data. The inquiry covers the number of financial institutions dealt with, total credit limits, and the balances and overdue amounts of 4 categories of borrowings for real estate purchases, movable property purchases, business investment and working capital, no longer only confirming whether adverse records exist. Amid market attention on leveraging by borrowing from banks and then repeatedly expanding positions with stocks or bond ETFs pledged, brokerages with cross-industry liability data can re-examine credit risk at maturity or renewal.
Banks to Make Comprehensive Inquiries for Investment-Purpose Loans
For banks, the scope is different: for all new personal loans with funds used for investment and wealth management, regardless of amount, banks must inquire into the applicant's 4 categories of brokerage data covering margin financing and securities lending, securities business loans, securities borrowing and lending, and unrestricted-purpose loans. The FSC said inquiry results serve only as a reference for credit approval, and banks will still follow the 5P principles to assess borrower conditions, fund purpose, repayment sources, claim protection and future outlook. Brokerage firms assess that financing ratios, interest rates or renewal terms may be adjusted where necessary, but higher borrowings do not mean immediate repayment is required.
Client Consent Required, Existing Accounts Not Affected
Cross-industry inquiries require client consent with the data scope disclosed; if a client refuses, firms may not inquire on their own, and brokerages may also decide whether to proceed based on risk-control policies. The new system mainly targets new applications, and members of the public with existing credit and no increased额度 will in principle not be affected. As for data update gaps, bank data is mainly reported monthly while securities data is mainly daily, and the FSC assesses the risk as controllable.