With the global interest rate hike, the outside world is worried that the rapid rise of interest rates will undermine the stability of the financial and real estate markets. Xin Chuan Real Estate Think Tank has compiled the non-performing loan ratios of all banks in 25 major countries around the world by the end of 2022. Taiwan’s non-performing loan ratio and mortgage default rate are all high The lowest in the world, far ahead, so that advanced countries in Europe and the United States cannot see the taillights of Taiwanese cars.
He Shichang, CEO of Xin Chuan Real Estate Think Tank, said that although the issues of unfinished buildings and construction business closures have been simmering recently, compared with other countries, the probability of thunderstorms in Taiwan is low, and the probability of Taiwan’s housing market and financial crisis is very small. (Extended reading:Buying a house and paying deed tax The most expensive house in Hsinchu County costs an average of 52,000 yuan, which is 10,000 yuan higher than the average price in Taiwan）
Can’t see the tail lights! Taiwan’s mortgage default rate is the lowest in the world. Experts say that the crisis in Taiwan’s housing market is minimal.File photo: Central News Agency
The Xinchuan Real Estate Think Tank compiled the “Bad Loan Ratio” (Bad Loan Ratio) of all banks in 25 major countries around the world by the end of 2022. The non-performing loan ratio of most countries is about 1%, and Taiwan’s non-performing loan ratio is the highest in the world. , only about 0.15%, and the overpayment ratio of residential loans in the same period was only 0.07%, and the default rate of mortgage loans was also the lowest in the world.
He Shichang, CEO of Xinchuan Real Estate Think Tank, said that although the U.S. central bank launched the “Eagle-style interest rate hike” last year, the outside world feared that an excessive rise in interest rates would undermine the stability of the financial and real estate markets. The decline shows that bank bad debts have not increased due to interest rates. Among them, Taiwan is the most outstanding performer, with the lowest non-performing loan ratio in the world, revealing that the quality of bank loans in Taiwan is extremely good, and the housing market is also very stable.
Nearly 40% of the country’s non-performing loans and house prices did not fall but rose
Among the non-performing loan ratios of all banks in 25 major countries in the world by the end of 2022, the countries with relatively poor performance are Thailand, Brazil, Indonesia and other three countries with more than 2%, Spain and Italy with more than 3%, and Russia, the United Arab Emirates and India as high as 6% to more than 7%. Due to the Russian-Ukrainian war in Ukraine, many people fled the country or lost their lives unfortunately, and the non-performing loan ratio soared to 38.1%.
He Shichang pointed out that although the non-performing loan rate in Ukraine has been soaring due to the war, due to the destruction of a large number of houses after the outbreak of the war, the shortage of materials, and the annual increase rate of CPI as high as about 25%, the national housing prices did not fall but rose. The average national housing price in Q4 last year increased by about 16.7% %, and the housing prices in the western states with less wars have risen the most, completely subverting the impression of the outside world.
Non-performing loan ratios of major countries around the world at the end of 2022.Photo/ Provided by Xinchuan Real Estate Think Tank
Advanced countries in Europe and the United States cannot see taillights of Taiwanese cars
The non-performing loan ratios of countries with better performance are lower than 2%. For example, the non-performing loan ratios of ten countries such as the United States, the United Kingdom, and Germany are between 1% and 2%. In addition, Switzerland, Australia, Canada, Sweden, South Korea, and Taiwan are all low It is less than 1%, among which Canada, South Korea and Sweden are only about 0.3%, tied for the second lowest in the world, while Taiwan takes the title of the lowest in the world with 0.15%, which is far superior to the major European and American countries.
He Shichang analyzed that the non-performing loan ratio is between 1% and 2% is the most common situation, and below 1% is the super-gifted student in the gifted class. Although Taiwan’s banks have a high concentration of real estate loans and the balance of real estate loans is as high as more than ten trillion yuan, due to the booming electronics industry last year, strong economic growth, and the central bank’s strict control of lending, the quality of real estate loans is good. At the end of last year, the over-lending ratio of residential loans was only 0.07%. The over-lending ratio of construction loans was only about 0.08%, which contributed to the reduction of the overall non-performing loan ratio.
He Shichang further pointed out that although the issues of unfinished buildings and builders’ bankruptcy have recently been simmering, compared with other countries, the probability of thunderstorms in Taiwan is relatively low. As long as house buyers carefully choose builders and agency sales, they can realize their dream of starting a family. Secondly, if compared with the United States, the default rate of housing loans in the United States was about 1.78% at the end of last year, while that in Taiwan was only about 0.07%, which shows that Taiwan’s housing market and financial system are relatively stable, and the probability of a crisis is very small.
Ye Yiru, Special Correspondent of Yahoo Finance: 22 years of experience in financial mainstream media, from the bubble of Web1.0 in 2000 to Web3.0 of the Meta universe, witnessed the history of the rise and fall of large and small business groups in Taiwan, and experienced five international financial crises. Think that finance is life, omnipresent, no matter how difficult financial management knowledge should be explained in a simple way. No matter you are young or old, you should manage money. If you don’t manage money, money will ignore you.
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2023-08-25 03:00:15
