We continue to implement the Principles for Responsible Investment (PRI) to meet the expectations of the society. Mega Holdings shall adopt the Equator Principles (EPs) into the credit extension policy. The credit extension policy expressly requires "pay attention to customers on whether they have fulfilled environmental protection, ethical management, and corporate social responsibilities as the basis for granting loans" and guide customers to fully implement environmental protection and CSR obligations. MICB and MBF revised the credit extension review procedures in 2019 to implement more rigorous reviews.
In 2018, MICB, MS, MITC, and CKI signed compliance statements for the "Stewardship Principles" and announced the statements on the company website and the TWSE Corporate Governance Center website. They have committed themselves to pay attention to investees and require them to implement corporate governance to improve long-term investment outcome.
■ Five-plus-two Key Start-up Industries
The government seeks to develop the domestic finance industry's functions for facilitating structural transformation in the economy and industrial development and it encourages loans for five-plus-two Key Start-up Industries, including Asia Silicon Valley, Smart Machinery, Renewable Energy Technology, Biomedical Technology, National Defense Industry, New Agriculture, and Circular Economy. MICB has always supported the government's major national construction projects and policies and formulated the Directions for Making Loans to Key Start-up Industries at the end of 2016 in hopes of driving investment, integrating funds, technology, and talent, and creating job opportunities and boosting economy locally. By 2018, the outstanding loan balance reached NT$384.2 billion, ranked No. 4 in the finance industry. MICB received Class A Award for providing loans to key innovative industries, and Special Award from the Financial Supervisory Commission, and Special Award for the Asia Silicon Valley industries for its long-term support of small and medium enterprises from the FSC in April 2018.
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■ Small and Medium Business Loan
The Company has long assisted small and medium businesses in obtaining working capital. The Plan for Small and Medium Business Loans was developed to help domestic small and medium businesses operate stably. In 2018, the loans outstanding reached NT$474.7 billion, an increase of NT$15.2 billion compared to 2017, for 8,656 borrowers. MICB received Class A Award for providing loans to small and medium enterprises from the Financial Supervisory Commission in April 2018.
In December 2018, MICB, the Small and Medium Enterprise Credit Guarantee Fund, and municipal governments jointly launched the "Renewable Energy Finance Loan Project" which provides NT$30 billion in loans to help companies obtain the funding required for renewable energy power generation industries.
■ Government Concessional Loan for Youth Housing
The Company has worked with Ministry of Finance to promote the Government Concessional Loan for Youth Housing. As of the end of 2018, the Company has made concessional loans to 18,697 households.
MICB has launched concessional loans in recent years with gradually decreasing gaps in interest rate with the Government Concessional Loan for Youth Housing. Customers can choose their own mortgage plan and it has led to a decrease in the number of new applications for Government Concessional Loan for Youth Housing. The Ministry of Finance has added a one-stage floating interest rate of 1.68% since 2019 to help the people plan their mortgage requirements based on the status of funding. MICB shall continue to work with government policies to promote the mortgage plan.