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.
TECH CLUSTER: The US company’s new office is in the Shalun Smart Green Energy Science City, a new AI industry base and cybersecurity hub in southern Taiwan US chip designer Advanced Micro Devices Inc (AMD) yesterday launched an office in Tainan’s Gueiren District (歸仁), marking a significant milestone in the development of southern Taiwan’s artificial intelligence (AI) industry, the Tainan City Government said in a statement. AMD Taiwan general manager Vincent Chern (陳民皓) presided over the opening ceremony for the company’s new office at the Shalun Smart Green Energy Science City (沙崙智慧綠能科學城), a new AI industry base and cybersecurity hub in southern Taiwan. Facilities in the new office include an information processing center, and a research and development (R&D) center, the Tainan Economic Development Bureau said. The Ministry
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
The Taipei International Cycle Show (Taipei Cycle) yesterday opened at the Taipei Nangang Exhibition Center, with the event’s organizer expecting a steady recovery in the industry this year following a tough last year. This year, 980 companies from 35 countries are participating in the annual bicycle trade show, showcasing technological breakthroughs and market development trends of the bicycle industry at 3,600 booths, the Taiwan External Trade Development Council (TAITRA, 外貿協會) said in a statement. Under the theme “Ride the Revolution,” the exhibition has attracted more than 3,500 international buyers from 80 countries to preregister for the four-day event, which is expected to