US remains largest debtor to Taiwan banking sector in 27th quarter

Taipei, June 25 (CNA) The United States remained the largest debtor to the Taiwanese banking sector for the 27th consecutive quarter in the first quarter of this year, with exposure up more than 8% from the previous quarter thanks to an increase in bonds, according to Taiwan’s central bank.

Taiwanese banks’ second-largest exposure at the end of March was to China, although local banking sector claims fell more than 4% from the previous quarter, the central bank said.

Data compiled by the central bank said Taiwan banks’ outstanding international claims on the United States on a direct risk basis stood at $125.38 billion at the end of March, up 8.30 percent. compared to the previous quarter.

Pan Ya-hui (潘雅慧), deputy head of the central bank’s Financial Inspection Department, told CNA that the US Federal Reserve launched a rate-hike cycle in March, a move that boosted US yields. Treasury and bonds, prompting Taiwanese banks to increase their holdings of US debt.

On the other hand, Pan said, lockdowns in several Chinese cities, including Shanghai, Suzhou and Kunshan, to curb COVID-19 infections have made Taiwanese banks more cautious, driving and reducing exposure to debtors. Chinese.

As a result, Taiwan’s banking sector’s claims on China at the end of March fell 4.56 percent from the previous quarter to $56.77 billion, but remained the sector’s second-largest debtor, it said. the central bank.

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, according to the central bank.

The non-banking sector outside Taiwan accounted for 59.56 percent of Taiwanese banks’ total exposure, foreign banks 28.84 percent and the public sector outside Taiwan 10.84 percent, the central bank said.

After the United States and China, Luxembourg remained third, with Taiwanese banks’ exposure on a direct risk basis at $39.72 billion at the end of March, down 6.11% from the quarter. previous, ahead of Hong Kong ($37.38 billion). and Japan ($30.86 billion), according to the data.

Australia took sixth place with Taiwanese banking sector exposure reaching US$30.81 billion at the end of the first quarter, followed by the Cayman Islands (US$18.62 billion), Singapore (17, 97 billion US dollars), Vietnam (16.87 billion US dollars) and the United Kingdom (16.81 billion dollars).

The top 10 debtors accounted for 73.99 percent of Taiwan banks’ total international claims at the end of March, the central bank said.

Among the 10 obligors, Australia saw the biggest 16.49% increase in debt sequentially, while exposure to Japan fell 15.91% quarter-on-quarter, the biggest decline, the board added. central bank.

(By Su Ssu-yun and Frances Huang)

End Article/AW