Cross-Industry Joint Credit-Check Goes Live on 31日
The Financial Supervisory Commission said the “Cross-Industry Interface for Exchange of Credit Business Credit Data” system built by the Joint Credit Information Center and the Taiwan Stock Exchange will go live on 10月31日, when banks and brokerages can check each other's clients' credit business credit status. For newly underwritten personal loan cases where the use of funds is for investment and wealth management, the banking side can, after obtaining client consent, query the client's credit data in the securities industry through the system.
3億 or 1% of Net Worth, Whichever Is Higher
The securities side sets a trigger for mandatory system inquiry based on clients' aggregate credit lines. Under current rules, when an individual natural person's aggregate credit line at the brokerage reaches NT$3億元 or 1% of the brokerage's net worth, the higher of the two must be used as the threshold. That is, when a brokerage's net worth is 300億 or below, the mandatory-check trigger is NT$3億元; if net worth exceeds 300億, it is 1% of net worth. Those meeting the mandatory-check condition can only proceed with further credit operations after the brokerage, with client consent, queries the client's credit data on the banking side.
Different Standards for Large and Small Brokerages
According to Taiwan Stock Exchange statistics, there are 64 securities firms island-wide, with fewer than 10 large brokerages having net worth over 300億, including leading firms with net worth over 千億, whose mandatory-check trigger reaches NT$10億元 or more. One anonymous brokerage questioned why, with the same overall banking credit status, the inquiry standards differ by brokerage. The firm said if small brokerages must sign consent forms and check the system at aggregate 3億, while large brokerages only check at over 10億, it could drive large clients to concentrate at large brokerages.
Industry Says It Is Only a Floor
On whether the mandatory-check condition is too loose, one brokerage interpreted the 3億 of total credit or 1% of net worth only as a floor, with each firm expected to tighten risk controls through stricter internal rules. The firm said for small brokerages with net worth of only about ten-odd 億, it is impossible to wait until aggregate client credit reaches 3億 to query the cross-industry system, and even large brokerages will not wait until aggregate client credit reaches ten-odd 億 to initiate a system search.