Taiwanese banks' year-end loans receive boost from heated consumer spending

Housing loans rose for the 22nd straight month to $226.97b.

Taiwanese banks closed the year on strong footing as their aggressive consumer financing campaigns proved successful in beefing up their domestic loan portfolio, reports Taipei Times.

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Housing loans expanded for the 22nd straight month in December to $226.97b (NT$6.98t), which represents a 0.52% increase. On an annual basis, housing loans rose 4.96% to NT$329.6b in 2018 to record the fastest pace of expansion in eight years.

Construction loans also edged up 1.42% to $10.72b (NT$1.86t) in line with heightened spending usually associated with the year-end period. On an annual basis, construction loans rose by 6.89% to $3.89b (NT$119.7b) to record the fastest pace of growth in six years.

Auto loans also rose for the fourth month in a row to $4.57b (NT$140.5b) on the back of promotional campaigns by dealers and replacement demand spurred by a tax break encouraging owners to trade in old vehicles.

Similarly, revolving credit for credit cards hit a four-year high to $3.67b (NT$112.89b) whilst other personal loans rose to $30.13b (NT$926.52b). 

An earlier report by Taiwan News noted that the country's banks are in a strong position to smash the $6.5b (NT$200b) lending target set in 2018 as banks also step up their lending activities in support of the government’s economic blueprint to upgrade its industries.