Local banks’ combined lending and investment in China as of the end of June fell 6.4 percent to NT$1.46 trillion (US$52.3 billion) from NT$1.56 trillion a year earlier, Financial Supervisory Commission (FSC) data showed on Friday.
Bank of Taiwan (臺灣銀行) lowered its exposure to China to NT$50 billion from NT$81 billion a year earlier, the largest cut among all Taiwanese banks, pushing down its ratio of exposure to China from 22 percent a year earlier to 13 percent, the data showed.
The seven other state-run banks also slashed their exposure to the country.
Photo: Bloomberg
Mega International Commercial Bank (兆豐銀行) reduced its exposure by NT$20 billion to NT$123 billion, which remained the highest among state-owned lenders, the data showed.
Taiwan Cooperative Bank (合作金庫銀行) reported exposure of NT$64 billion to China, down by NT$16 billion from a year earlier, while Hua Nan Commercial Bank (華南銀行) reduced its exposure by NT$12 billion to NT$25 billion, the data showed.
Several privately owned banks also decreased their lending and investment in China, but did so at a slower pace than their state-run peers.
CTBC Bank (中國信託銀行), which had the greatest exposure to China among all local banks, reported that its investment and lending in China was NT$187 billion as of the end of June, down by NT$5 billion from a year earlier, but still higher than any other bank, the FSC said.
Taipei Fubon Commercial Bank (台北富邦銀行) lowered its exposure by NT$7 billion to NT$117 billion, which was the fourth-highest after CTBC Bank’s NT$187 billion, Cathay United Bank’s (國泰世華銀行) NT$130 billion and Mega Bank’s NT$123 billion, the data showed.
Shanghai Commercial and Savings Bank Ltd (上海商業儲蓄銀行) decreased its exposure by NT$17 billion to NT$74 billion, while Yuanta Commercial Bank (元大銀行) cut exposure by NT$12 billion to NT$20 billion, the data showed.
A few banks bucked the trend by increasing their exposure to China: Cathay United Bank boosted its exposure by NT$21 billion to NT$130 billion, Bank SinoPac (永豐銀行) raised exposure by NT$5 billion to NT$80 billion and KGI Bank (凱基銀行) increase exposure by NT$9 billion to NT$42 billion, the data showed.
Newly launched Web-only banks Rakuten International Commercial Bank Co (樂天國際銀行) and Line Bank Taiwan Ltd (連線商業銀行) did not offer loans or invest in China, as they focus on consumer lending, the commission said.
Overall, local banks’ combined exposure to China accounted for 37 percent of the banks’ combined net value, down from 41 percent a year earlier, the data showed.
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