Taiwan Banks’ Property Lending Ratio Falls to 15-Year Low of 24.67%

Article 72-2 of Taiwan’s Banking Act caps commercial banks’ combined lending for residential and business construction at 30% of the sum of their total deposits and outstanding financial bonds. The ratio determines how much capacity banks have to extend mortgages and construction financing, and is an important gauge of credit controls and liquidity in the property market.

Financial Supervisory Commission data showed that domestic banks’ real-estate lending ratio fell to 25.03% at the end of March 2026. It declined for a 10th consecutive month, reaching its lowest level in nearly 14 years and moving closer to its record low. The main factors were the exclusion of New Youth Housing Loans from the lending numerator and central bank measures to curb property speculation, which reduced related credit. Banks consequently gained more lending capacity, while earlier backlogs in mortgage approvals have eased markedly.