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China’s exposure to Taiwanese banks was the second largest, followed by Luxembourg, followed by Hong Kong and Japan, the central bank said.
The United States remained the largest debtor country to Taiwan’s banking sector for a 27th consecutive quarter in the first quarter of this year, with exposure up 8.3% from the previous quarter thanks to an increase in US bonds, the central bank announced on Friday. .
Data compiled by the central bank showed Taiwanese banks’ outstanding international claims based on direct exposure to the United States stood at $125.38 billion at the end of March.
Financial Inspection Department deputy director Pan Ya-hui (潘雅慧) said the U.S. Federal Reserve’s launch of a rate-hike cycle in March boosted Treasury and bond yields, prompting Taiwanese banks to increase their holdings of US debt.
China’s exposure to Taiwanese banks was the second-largest, although local banking sector claims fell 4.56 percent from the previous quarter to $56.77 billion, the agency said. central bank.
The COVID-19 shutdowns in several Chinese cities, including Shanghai, Suzhou and Kunshan, have made Taiwanese banks more cautious, forcing them to reduce their exposure to Chinese debtors, Pan said.
At the end of March, the United States and China accounted for 23.71% and 10.74%, respectively, of local banking sector exposure, which totaled $528.7 billion, up 1.26% from the quarter. earlier, in the wake of an increase in public sector investment outside Taiwan, the central bank said.
After the United States and China, Luxembourg remained in third place, with Taiwanese banks’ exposure on a direct risk basis at $39.72 billion, down 6.11% from the previous quarter and ahead of Hong Kong ($37.38 billion) and Japan ($30.86 billion). ), the data showed.
Australia took sixth place with its exposure to the Taiwanese banking sector reaching $30.81 billion, followed by the Cayman Islands ($18.62 billion), Singapore ($17.97 billion), Vietnam ( $16.87 billion) and the United Kingdom ($16.81 billion).
The top 10 debtors accounted for 73.99 percent of Taiwan banks’ total international claims in the first quarter, the central bank said.
Among the top 10, Australia saw the biggest sequential increase in debt of 16.49%, while exposure to Japan fell 15.91% quarter-on-quarter – the biggest drop, it said. -he declares.
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