Local banks’ outstanding international claims in the final quarter of last year edged up 1.94 percent from three months earlier to US$522.2 billion, due to a pickup in foreign banks’ debt holdings, the central bank said on Wednesday.
The US remained the largest debtor country to banks registered in Taiwan on a direct risk basis for the 26th consecutive quarter, even though the value slackened by 0.47 percent to US$115.78 billion, the central bank said.
China ranked second, with local banks’ exposure of US$59.48 billion, and Luxembourg was third, with US$42.31 billion.
Hong Kong, Japan, Australia, Singapore, the Cayman Islands, Vietnam and the UK rounded out the top 10, the central bank said.
Overall, local banks’ exposure to the top 10 debtor countries amounted to US$387.5 billion in the September-to-December period, it said.
Vietnam and Singapore climbed up the ranks, as local banks’ exposure spiked 12.75 percent and 12.11 percent respectively.
Vietnam has gained importance, as Taiwanese manufacturers relocate from China to dodge punitive tariffs by Washington.
Fast-growing labor costs in China also lent support to companies’ supply chain realignment.
The nonbanking private sector accounted for 59.88 percent of Taiwan’s total international claims on a direct risk basis, while the banking sector made up 29.91 percent and government institutions constituted 9.47 percent, the central bank said.
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