US Remains Taiwan Banks’ Largest Debtor For Over A Decade
The United States has retained its position as the largest debtor to Taiwanese banks for the 41st consecutive quarter, extending a streak that has now lasted more than ten years. This means Taiwanese banks have more financial exposure to the US than to any other country, according to a report by Focus Taiwan citing central bank data.
By the end of September, Taiwanese banks’ exposure to the US rose by USD 4.03 billion, or 2.07 per cent, from the end of June to reach USD 198.896 billion. Hsieh Jen-chun, deputy head of the central bank’s Department of Financial Inspection, said the increase was driven by higher investments in US securities and expanded lending activities.
Luxembourg Overtakes China As Second-Largest Debtor
Luxembourg has emerged as the second-largest debtor to Taiwanese banks, overtaking China during the quarter. Exposure to Luxembourg increased by USD 2.72 billion to USD 50.77 billion by the end of September.
Hsieh noted that the growth was largely due to Taiwanese banks allocating more funds into trust assets in Luxembourg. This marked the third consecutive quarter of rising exposure to the European financial hub.
China Slips To Third As Global Exposure Expands
China moved down to third place despite an increase of around USD 1.07 billion, bringing total exposure to USD 49.56 billion. Hsieh said Taiwanese banks continue to keep exposure to China within the USD 40–50 billion range due to concerns over China’s economic outlook and regulatory restrictions imposed by Taiwan’s Financial Supervisory Commission.
Overall, Taiwanese banks’ total international claims, including loans, investments, and deposits, rose 3.48 per cent quarter-on-quarter to USD 670.8 billion, supported by stronger lending to the global non-bank private sector. Australia ranked fourth with USD 42.14 billion, followed by Japan, Hong Kong, the UK, Singapore, France, and Vietnam. Together, the top 10 debtor nations accounted for USD 496.0 billion, or nearly 74 per cent of Taiwanese banks’ global exposure.
(This article has been syndicated from ANI)
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