Taiwan's Stock Market Plunge Sparks Credit Application Surge: Investors Seek Emergency Funds

As TAIEX Suffers, Investors in Taiwan Face Margin Calls and Turn to Banks for Financial Lifelines.

The Taiwan Stock Exchange (TAIEX) has experienced a sharp decline over the past three days, leading brokerage firms to issue margin calls. This situation has significantly impacted investors in Taiwan, forcing them to seek immediate financial assistance.

A recent investigation reveals that several banks in Taiwan have witnessed a dramatic surge in small personal loan applications. The volume of these applications has more than doubled compared to normal levels, with some banks reporting increases of over 200%. Furthermore, there has been a significant rise in the number of cash advances requested through credit cards, with increases of three to four times or even higher.

Bank executives, while acknowledging the surge in applications, have expressed concerns about their capacity to manage the increased workload. They noted that due to limited staffing, customers may experience delays in processing their applications. Moreover, banks are obligated to conduct the necessary credit checks, including assessing the applicant's financial standing and income, before approving any loan requests.