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Taiwanese regulator tightens rule on bank loans to Chinese borrowers

Taiwan's Financial Supervisory Commission asked local lenders to increase their allowance for bad debt on loans to Chinese borrowers, citing increasing financial risk in China, The Taipei Times reported Dec. 20, citing FSC Chairman Wellington Koo.

The regulator has increased the loan provision ratio to 1.5% on bank lending to Chinese borrowers, while the ratio remained at 1.0% on lending to other borrowers, Koo said.