US remains Taiwan’s top debtor nation for 28th consecutive quarter

Taipei, Oct 1 (CNA) The United States remained Taiwan’s banking sector’s largest debtor for the 28th consecutive quarter at the end of June, with exposure up around 6% from the previous quarter, the bank said. local central.

Central bank data showed that the Taiwan banking sector’s outstanding claims on the United States on a direct risk basis totaled $132.63 billion at the end of June, up $7.25 billion, or 5 .78%, compared to the previous quarter.

The Federal Reserve’s hike in interest rates this year has pushed up US Treasuries and bond yields, prompting Taiwanese banks to increase their holdings of US debt, Taiwan’s central bank said on Friday.

Meanwhile, China remained the second-largest debtor to Taiwanese banks at the end of June, with exposure of $52.35 billion, a quarterly decline of $4.42 billion, or 7.79%, the central bank said, attributing the decline to a stronger US dollar.

Hong Kong was in third place, with exposure of $35.91 billion at the end of June, down 3.93% from a year earlier, followed by Luxembourg ($33.67 billion), Japan ( $29.02 billion) and Australia ($28.89 billion). ), the data showed.

Vietnam, which occupied seventh place, saw a quarterly increase in its debt of 8.10% to 18.24 billion dollars, as Taiwanese investors flocked to the Southeast Asian country as part of the restructuring of the global supply chain, the central bank said.

Singapore was in eighth place, with exposure of $18.18 billion at the end of June, followed by the Cayman Islands ($17.89 billion) and the United Kingdom ($16.97 billion), according to the data.

At the end of June, Taiwan’s banking sector’s outstanding international claims on a direct risk basis stood at $519.5 billion, down 1.74% from the previous quarter due to lower debts. to private non-bank entities, the central bank said.

The top 10 debtors accounted for 73.87 percent of Taiwan banks’ total outstanding international claims at the end of June, with their exposure reaching $383.7 billion, the central bank said.