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Taiwan banks may cut rates on company loans, Central Bank says

Taiwan banks may cut rates on company loans, Central Bank says

Taiwan’s banks may cut interest rates on corporate loans next month in response to lower funding costs, the central bank said in a statement Tuesday.

Yang Chin-long (楊金龍), Deputy Governor of the Central Bank of Taiwan met with executives from eight local banks yesterday to discuss interest rates charged to companies, it said.

Rates on one-year time deposits have fallen by 1.15 percentage points while mortgage and student loan rates have also decreased, the statement said. More than 93 percent of mortgage holders have had their application to renegotiate loans approved, it said.

The central bank on Dec. 11 lowered its benchmark discount rate by 0.75 percentage point to 2 percent, the largest cut in 26 years and the fifth reduction in two months. Governor Perng Fai- nan (彭淮南) said Monday the bank has no plans to cut the rate to zero.


Updated : 2021-04-15 03:26 GMT+08:00