The FSC announced its plans to strengthen inclusive finance measures for this year on February 15.
A. Reduce Interest Payment Burdens on Lower Income Households
(1) Work to improve the microfinancing options and encourage the private sector lenders to make more microloan opportunities available to low credit borrowers
- Consider a wider reduction in interest rates for ‘sunshine loan’ products and work to diversify microfinancing channels through different financial sectors
- Provide incentives to financial institutions that have outstanding records in the provision of microloan products
(2) Strengthen measures to root out illegal predatory lending and work to support victims
B. Strengthen Targeted Support for Vulnerable Groups
(1) Introduce a government-backed ultra-long term (40-year) home mortgage product for young adults and expand support to lower their rent costs
(2) Diversify options for receiving reverse home mortgage payments and promote other financial products for those in and/or preparing for retirement
(3) Allow a payment deferral of up to two years for those hit by COVID-19 before their debt adjustment payment obligations take effect
(4) Work for the enactment of the new consumer credit bill (to be submitted to the National Assembly in H1 2021) to establish a fair system of debt adjustment between creditors and individual debtors
C. Ensure Effective Implementation of the Financial Consumer Protection Act
(1) Operate a taskforce to ensure a smooth implementation of the new Financial Consumer Protection Act
(2) Set up an online bulletin board to announce a schedule of public information sessions and work to strengthen public awareness about the expected changes in rules
* Please refer to the attached PDF for details.