The US remained the largest debtor nation to Taiwanese banks for the 38th consecutive quarter as of the end of December last year, the central bank said on Friday.
Taiwanese banks’ exposure to the US totaled US$176.997 billion, a 2.74 percent decline from the previous quarter, central bank data showed.
The decrease reflects growing caution among businesses amid global economic uncertainties, leading to slower investment and borrowing, Department of Financial Inspection Deputy Director-General Hsieh Jen-chun (謝人俊) said.
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In addition, a wave of redemptions by Taiwanese investors in US mutual funds contributed to the reduction in US exposure, Hsieh said.
The US accounted for 29.53 percent of Taiwanese banks’ total international claims at the end of December last year, compared with 29.81 percent at the end of September in the same year, he said.
China remained the second-largest debtor nation to the local banking system, with exposure at US$46.94 billion, a 2.75 percent decrease from the previous quarter.
After the US and China, Luxembourg ranked third with exposure from Taiwanese banks at US$44.20 billion, a 0.92 percent decrease from the previous quarter, followed by Australia (US$37.86 billion, down 5.79 percent) and Japan (US$34.50 billion, down 2.84 percent).
Rounding out the top 10 debtor economies were Hong Kong with exposure of about US$31.82 billion (down 1.15 percent from the previous quarter), followed by the UK (US$20.08 billion, down 2.34 percent), Singapore (US$17.80 billion, up 0.10 percent), South Korea (US$17.13 billion, down 0.76 percent) and France (US$15.83 billion, down 0.95 percent).
Combined exposure to the top 10 debtor nations totaled US$443.2 billion, accounting for 73.93 percent of Taiwanese banks’ total international claims as of the end of December last year, the central bank said.
Overall, Taiwanese banks’ international claims — comprising loans, investments, deposits and other holdings on a direct risk basis — dropped US$11 billion from the previous quarter to US$599.4 billion, ending a four-quarter streak of increases, central bank data showed.
Hsieh said the decline in aggregate exposure was due to a decrease in interbank lending and the depreciation of non-US dollar currencies against the greenback.
In the final quarter of last year, the won, Australian dollar, yen, euro and yuan weakened 10.85 percent, 10.22 percent, 8.87 percent, 6.81 percent and 3.88 percent respectively against the US dollar, he said.
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