MICROCAPITAL BRIEF: Financial Supervisory Commission (FSC) of Taiwan Encourages Banks to Reduce Microcredit Transaction Fees

The Financial Supervisory Commission (FSC) of Taiwan, the government agency charged with regulating the island’s insurance and banking sectors, reportedly has encouraged banks to reduce the fees they charge on microcredit loans in Taiwan. Microcredit loans are defined by FSC as those that do not exceed TWD 100,000 (USD 3,300). Some banks have already agreed to lower their fees, but before FSC began to encourage the reduction, most Taiwanese banks charged processing fees between TWD 3,000 (USD 100) and TWD 6,000 (USD 200) on microcredit transactions, with a maximum charge of about TWD 10,000 (USD 334). The commission is attempting to get private banks to agree to reduce the highest of those fees on such loans by at least TWD 3,000 (USD 100) [1].

By Benjamin Krupp, Research Associate

About Financial Supervisory Commission (FSC)

The Financial Supervisory Commission (FSC) was established in 2004 as the government authority charged with regulating and supporting financial markets and services in Taiwan. The stated goals of the commission include maintaining a fair and efficient financial environment and protecting both consumers and investors. As of 2013, FSC reported 1,060 employees.

Sources and Additional Resources

[1] Taiwan News: Banks to Lower Fees on Microcredit Transactions

[2] The Economic Times: China’s Micro-credit Companies Gave Loans Up to US $137 billion: People’s Bank of China

MicroCapital, August 15, 2013: People’s Bank of China (PBC) Reports Growth of Microcredit Sector in Country

MicroCapital, January 16, 2013: Microcredit Loans in China Increase 52% to $96b in 2012

MicroCapital, December 9, 2012: TransferTo Partners with AT&T, Taiwan Mobile, Korvac Holdings to Allow Customers to Send, Receive Phone Airtime in the Americas and Asia

MicroCapital, March 8, 2010: ACCION International Announces Inauguration of ACCION Microcredit China (AMC), a Microfinance Institution (MFI) Located in Chifeng Prefecture, Inner Mongolia, China

MicroCapital Universe Profile: Financial Supervisory Commission (FSC)

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

 

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