Premier Lin Chuan today encouraged the Financial Supervisory Commission (FSC) to continue instituting new reform measures after hearing the commission’s report on the financial sector’s role in lifting the real economy.
The FSC aims to strengthen financial support for industries, which in turn will create more prosperity for financial businesses and the real economy. More specifically, the commission will provide capital resources, financial consultation, and hardware and software facilities for the purposes of promoting industrial growth, helping young entrepreneurs, spurring innovation and creating jobs.
To attract investments in the public construction sector, the FSC plans to raise the limit on how much privately placed real estate investment trusts can invest in developmental real estate. The commission will also make it easier for institutions to issue securities backed by certain infrastructure projects that involve private investments.
As for encouraging banks to provide more loans to innovative businesses, the FSC has asked the Ministry of Economic Affairs to raise the credit guarantee percentage provided by the Small and Medium Enterprise Credit Guarantee Fund from 80 percent to 90 percent.
To promote digital business models and facilitate financial transactions, the FSC has also mapped out development plans for a suite of financial technologies including mobile payment applications, crowdfunding platforms, insurance products employing big data applications, and identity authentication services.