(Bloomberg) -- Taiwan plans to ease rules to allow the finance industry to become a bigger part of the island’s economic output amid a tech-led boom in investments, according to the new head of its market watchdog.

“Taiwan financial industry output only makes up 6% of our GDP,” said Peng Jin-lung, the chairman of Taiwan’s Financial Supervisory Commission at a media presentation on Friday. “There’s more room to expand the market by easing rules and providing more products.”

Named top regulator last month, Peng supervises financial institutions with assets of NT$109 trillion ($3.4 trillion). He also oversees risk management of Taiwan’s stock market, which has gained more than 70% to a market value of NT$74 trillion over the past 18 months.

He takes over at a time of increased financial and geopolitical risk. The nation’s insurance industry is emerging from a period of missteps, while a tech-fueled surge in the island’s stock markets has raised concerns over an overheating.   

Peng said at the briefing that stocks were supported by fundamentals, signaling no immediate concern about the frothy markets. 

The regulator also pledged to shortening the review process for banks to issue structural debt and allow more financial products to be used as collateral for margin lending and raise the upper limits for loan amounts. 

Taiwan’s life insurance industry, which accounts for more than 30% of the financial sector’s assets, is busy raising funds for the 2026 implementation of the new system of stricter accounting and capital standards. There are 21 local and foreign life insurance companies in Taiwan, including Cathay Life, Fubon Life and Nanshan Life.

The regulator now hopes to guide the insurance industry to invest more domestically, Peng said. 

Taiwan is also facing increased cross-strait geopolitical risks. His predecessor and other officials have said the government has made preparations but is not in a position to disclose details.    

Peng said that “we can’t change a lot of things, but we have robust industry and wealth among the general public” and Taiwan can utilize its strength to attract foreign investors.

The regulator is also set to brief on the relaxation of financial technology innovation business in July, according to Peng. It will complete rule draft on virtual assets management in December and is mulling to allow overseas Bitcoin ETF investments. 

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