Check the New Real Estate PF Loan Limits and PG Risk Rules for Credit Finance Companies

What does this revision change?

The Financial Services Commission stated on October 23 that it is issuing an advance notice of changes to the Regulation on Supervision of Specialized Credit Finance Business. This revision serves as a follow-up measure to earlier plans aimed at improving the soundness of real estate PF, while also reflecting practical feedback gathered from meetings with credit finance industry leaders.

The core adjustments center on three pillars. First, stricter limits are placed on real estate-related credit extended by non-bank lenders such as capital companies. Second, credit card issuers are required to systematically monitor and evaluate payment settlement risks of payment gateway (PG) firms. Third, business boundaries for rental assets are broadened to support revenue diversification among finance companies.

Market attention is primarily focused on the tighter credit caps for real estate and construction. The regulator explained that the move is designed to preemptively prevent excessive capital concentration in specific sectors.

How do the real estate loan limits change?

Under the existing framework, only real estate PF loans faced a single ceiling of 30% of credit assets for specialized credit finance companies. In contrast, general property loans and construction loans had no separate industry caps, which led to criticisms regarding regulatory blind spots.

The proposed amendment establishes a tighter structure, bringing parity with standards applied to savings banks and mutual finance institutions. The table below outlines how loan limits will change under this revision, based on details verified on 2026-10-24.

Once enacted, finance companies must keep individual exposure to each sector below 30%, while ensuring that the combined sum across all three areas does not exceed half (50%) of total credit assets. Even if a single category remains under its respective 30% cap, further credit issuance will be halted if the aggregate total reaches 50%.

Why is PG settlement risk management made mandatory for card firms?

As online commerce expands rapidly, the financial soundness and settlement stability of payment gateways have become critical issues for the financial system. The measure is aimed at preventing liquidity distress at PG companies—such as delayed settlements—from spilling over to card companies and consumers.

According to reporting by Digital Daily, the revision mandates that card companies evaluate PG settlement risks on a quarterly basis during ongoing contract periods, as well as upon signing or renewing agreements.

Card companies must review settlement delay risks, financial health, and the incidence of irregular or fraudulent transactions. If risk levels are evaluated as elevated, card issuers will have formal regulatory grounds to decline contract signing, halt transactions, or terminate existing agreements early. The goal is to establish an effective filter against disruptions across the retail payment network.

What does the deregulation of rental business entail?

Alongside stricter prudential rules, financial authorities also introduced flexibility to expand ancillary business lines for credit finance firms. The limits on holding rental assets have been adjusted to reflect growth in the corporate and consumer rental markets.

Previously, credit finance companies could only handle rental assets within the balance of their leasing assets, making it difficult for firms with smaller lease portfolios to scale rental operations. The revision expands this threshold to the combined sum of leasing and installment financing assets.

In addition, individual caps on specific rental item categories have been abolished. This allows finance companies to supply a broader range of consumer goods and industrial equipment rentals while maintaining overall asset soundness.

What schedule should be checked going forward?

The regulatory timeline outlined by the Financial Services Commission consists of several key milestones:

• Notice period: Runs from October 23 through December 2, 2026, collecting opinions from financial institutions and relevant stakeholders.
• Regulatory review and resolution: Following public comment, the draft will undergo review by the Regulatory Rationalization Committee before formal adoption by the FSC.
• Enforcement target: The Financial Services Commission plans to conclude the legislative process and put the revised regulations into effect in the first quarter of 2027.

Grace periods and specific calculation methodologies for individual firms may be clarified during the notice period. This overview is based on the Financial Services Commission press release and financial press reports confirmed on 2026-10-24. You can check the finalized notice on the announcements board of the Financial Services Commission website.