Domestic banks’ exposure to China remained at a record-high level at the end of the first quarter, making China the nation’s largest debtor, the central bank said yesterday.
On an immediate risk basis, Taiwanese banks’ outstanding international claims to China totaled US$48.85 billion as at the end of March, up from US$45.88 billion at the end of last year, the central bank said in its quarterly report.
“The increase in commercial activity between China and Taiwan has continued to boost domestic banks’ exposure to China,” Su Dao-min (蘇導民), deputy head of the monetary authority’s Banking Examination Department, said at a press conference.
In addition, local banks’ continuous expansion in China, as well as relatively high interest rates on yuan deposits, raised the overall exposure to China, Su said.
International claims comprise all claims on non-residents in all currency units and foreign currency claims on residents.
The total number of international claims on banks — including their domestic banking units, offshore banking units and overseas institutions — totaled US$263.06 billion at the end of the first quarter, up 3.24 percent quarter-on-quarter, mainly due to demand for loans overseas.
Claims on Luxembourg hit US$42.18 billion at the end of March, making it the second-largest debtor, followed by the US, on which banks had a total of US$29.53 billion of claims.
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