Taiwan credit costs next year forecast up 30% to 4 times
The global economy into recession crisis in the Taiwan banking business for Credit financing of the conservative attitude. Most of the bank forecast an average cost of credit next year will grow by about 30%. Credit Suisse forecast that next year the Taiwan banking industry will increase the credit interest rates at least 1 or more times this year to 50 basis points (0.5 percent), the rate may increase up to nearly 2%, which is the highest 4-fold increase. Credit Suisse recently visited 11 banks in Taiwan, the vast majority of that growth next year lending up to 1% to 3%, and mainly on the "Government", a major construction and large-scale enterprise credit; banks and enterprises will increase further next year Credit lending rate, the interest rate will be increased this year to 50 basis points (BPs), doubled from 117 to the magnitude ranging from 199BPs. In addition, the Credit Suisse visit to the island's 11 banks, most of the private banks in the expected economic slowdown next year, will cut the cost of up to 10%. And Taiwan, "central bank" policy of successive interest rate cut, the impact on the banking industry, Credit Suisse believes that in the next 3-6 months, net profit is likely to face a number of poor pressure. On the other hand, Credit Suisse also forecast the island's banks next year wealth management fee income as a whole will decline 20%; on the island and parts of the investment bank cut risk exposure and will bring them in line with trade-related deterioration of profits.