In an effort to elevate the competitiveness of SMEs, the MOF has initiated the “Subsidies for SMEs”, a financing program with a total amount of NT$300 billion, for the period between April 17, 2023 to December 31, 2024. Loans will be offered at preferential rates by state-owned banks such as Land Bank of Taiwan. Up to the end of September this year, the Bank successfully approved loans of over NT$15 billion, injecting capital into micro-enterprises, startups and transformed SMEs.
The MOF's “Subsidies for SMEs” apply to SMEs defined in the “Standards for Identifying Small and Medium-sized Enterprises” or SMEs as regarded by the Small & Medium Enterprise Credit Guarantee Fund of Taiwan, and small-sized businesses set forth in Article 5 of the “Business Registration Act”. The preferential rates are subject to the circumstances of each SME.
As a result of the COVID-19 pandemic, the Russo-Ukrainian War, high inflationary pressure, and interest rate hikes in Europe and the U.S., the global economy has declined in recent years. Orders received by Taiwan's SMEs also decreased due to the downturn in the international economy and subsequent economic impacts, such as the slowdown in global demand and difficulties in destocking, while at the same time faced with the urgency of net-zero transformation and keeping their businesses sustainable. To address this, the MOF's “Subsidies for SMEs” will facilitate the recovery of SMEs in the post-pandemic revitalization stage, further achieving the goals of net-zero transformation and sustainable development.
As a 100% state-owned bank, Land Bank of Taiwan fully cooperates with the government's policy, and the “Subsidies for SMEs” financing program is key to boosting the business of SMEs. Aligning this program with the “MOEA Project Loans for Post-pandemic Revitalization of SMEs” and the “MOEA Project Loans for Low-Carbon and Intelligent Transformation and Development for SMEs and Optimization of Infrastructure for Factories Incorporated Into the Government Management and Specific Factories”, the benefits of these funds will be fully maximized. In doing so, we hope we are able to establish a long-term partnership with SMEs to jointly march towards the goals of the development of industrial innovation and transformation, fulfilling corporate social responsibilities as a whole.
Since assuming office, Chuan-Chuan Hsieh, Chairman of Land Bank of Taiwan, has put together five strategies, namely “business digitalization”, “quality workforce”, “balanced credit”, “diversified profits”, and “corporate social responsibility fulfillment”. In terms of balanced credit, to refrain from the risk of over-concentration of customer groups, as seen in Silicon Valley Bank (SVB), Chairman Hsieh has led the Bank to proactively provide loans to SMEs and the six core strategic industries. Not only was the development dispersed into the credit industries, groups, regions, and branch portfolios, but environmental sustainability targets were rooted in the core of the business. The “Green Building Financing Marketing Program” has been put in place to encourage the construction sector to build more sustainable buildings with green materials and install energy-saving, low-carbon and seismic-resistant facilities, enhancing energy efficiency.
Thanks to the Bank’s long-term ESG strategy, where we have been effectively performing the role of an inclusive finance provider, we have received the “Award of Excellence for Providing Loans to the Six Core Strategic Industries” and “Special Award Banks with Outstanding Performance in Loans for Balanced Regional Development in Central Region” by the FSC this year. Moreover, the Bank has won several awards for sustainability ratings for four consecutive years and won the “Top 25% Best Banks for Principle for the Evaluation of Financial Service Industries to Treat Clients Fairly” for five consecutive years, making us a trusted front-end financial service provider.
This year, the Bank is moving towards its target of a “friendly environment” and becoming a “friendly stakeholder”, striving to build an operational model that boasts common good between the environment, customers, and employees while at the same time strengthening its service quality. In the future, the Bank will continue to dedicate itself to its core value of fulfilling corporate social responsibilities and playing an active role in a positive environment, society and economy.
Contact person: Shih-Chi Lin
Contact No.: 02-2348-3339
Last updated:
2023/10/30