Responses of Financial Institutions to Government Policy in Terms of Construction Financing ─ A Case Study on the Construction Financing by A Bank to幸福建設公司

• Main Authors: LIN ,XIU-ZHU , 林綉珠
• Other Authors: 鎮明常
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/b2ze79

碩士 === 國立中正大學 === 高階主管管理碩士在職專班 === 104 === Abstract In the recent years, real estate market pricing including housing price in part of areas in Taiwan has been increased. The reasons for such increase include too many hot monies without proper investment vehicles, low-interest investment environment, and problems of tax policies with respect to real estate. And people have started to doubt policies related to the right of adequate and affordable housing implemented by the Government. Recently, main focus of real estate market lies on that price thereof has been overly high and problems of tax policies which have leaded to real estate tax policies reform. In order to improve real estate tax policies, the Government needs to take care of real estate market, the right of adequate and affordable housing and fairness of tax rate. Credit business is the main business of financial institutions and the expected effects of policy already caused the trading volume of real estate market shrinking. In the event that the prosperity of the economic environment and the real estate market turn down, overdue loans and bad debts will increase. Financial institutions should act sooner and implement related measures in order to response to the real estate tax policies to be reformed by the Government, and to lower its own risks regarding real estate credit business. When making real estate loans including housing loans, financial institutions should consider whether the location of the subject real estate is good, the financial status and reputation of the construction company and its past projects and should investigate the company’s financial source and its ability to raise funds. In order to control the risk of residential real estate loans, loan commitment for owner-occupied residence could lower the risk weight of capital charge, and improve the Bank of International Settlement ratio：BIS ratio Therefore, more loan commitment for owner-occupied residence is advised for the banking industry.