FSC Mulls P2P Lending Platform

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copyright Ken Teegardin, www.SeniorLiving.Org

Financial Supervisory Commission (FSC) Chairman Tseng Ming-Chung said on March 4 that the commission is looking into opening a platform for peer-to-peer (P2P) lending. The results of the FSC’s study are expected before the end of June.

P2P lending has generated high profits in places such as mainland China, but it has also come with high risks. The annual rate of return is expected to reach 8-9%.

Yin Nai-ping, professor of finance at National Chengchi University, said the financial needs of people for online transactions is increasing with the development of online shopping, and Taiwan has room to develop a personal lending platform combined with third-party payment. He added that authorities should consider how financial institutions may provide guarantees in this business to reduce risk. Yin suggested that P2P lending in Taiwan could begin on a trial basis before expanding.

Source: The Central News Agency

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