SMEs play an extremely important role in Taiwan’s economic development. In early 1970’s, a large number of SMEs suffered from the recession and inflation brought about by the oil crisis.
At that time, the FIs turned to be conservative and requested very stringent collateral requirements on SMEs’ loan applications. SMEs thus encountered great difficulties in obtaining financing.
To cope with these situations, the Taiwan SMEG was established in 1974 to strengthen the financing assistance to SMEs.