The Financial Supervisory Commission (FSC) on Tuesday asked banks to examine their mortgage practices, as it had found that dummy accounts had been used to inflate real-estate prices in metropolitan Taipei.
It found that about 20 investors offered money management courses in which they encouraged consumers to apply for mortgages with banks, saying that they would help them invest in property free of charge, Financial Examination Bureau Deputy Director General Chang Tzy-ming (張子敏) told a news conference.
The investors helped them pay the mortgages, assigning scriveners to withdraw cash from banks to pay the debt, Chang said.
The scheme to inflate prices
FSC to inspect sales of financial products to seniors
RISK-AVERSE GROUP: The commission would look into whether the designated banks, insurers and credit unions have sold high-risk financial products to seniors
By Kao Shih-ching / Staff reporter
The Financial Supervisory Commission (FSC) would inspect 25 companies to see if they have contravened regulations while selling products to senior citizens, commission Chairman Thomas Huang (黃天牧) said yesterday.
The commission selected 10 banks, six credit unions, six insurance companies and three securities companies for examination following a preliminary assessment, Huang told a meeting of the legislature’s Finance Committee in Taipei.
The commission would look into whether the companies have sold large amounts of high-risk financial products, such as high-yield bonds with low ratings or stocks-linked funds, to people over 65, Financial Examination Bureau Deputy Director-General