Taiwanese banks extended NT$150.3 billion (US$4.63 billion) in new loans to nations included in the government’s New Southbound Policy (NSP) during the first four months of this year, led by lending to India and Australia, data compiled by the Financial Supervisory Commission showed earlier this month.
The figure is 1.8 times the NT$83.9 billion in new loans to the NSP nations recorded for the whole of last year and 2.37 times the commission’s annual new loan target of NT$63.4 billion for this year, indicating a steady recovery in fund demand in those markets, the regulator said.
The policy, introduced in 2016, is designed to enhance trade and exchanges between Taiwan and 18 nations in Southeast Asia, South Asia and Oceania: Australia, Bangladesh, Bhutan, Brunei, Cambodia, India, Indonesia, Laos, Malaysia, Myanmar, Nepal, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Thailand and Vietnam.
Photo courtesy of Taipei Fubon Commercial Bank
Local banks have in the past few years not only increased lending to clients expanding operations in those nations, but also launched new branches or representative offices in the countries in hopes of attracting more business opportunities.
In April, the commission approved Far Eastern International Bank’s (遠東銀行) application to set up a branch in Singapore and permitted O-Bank Co (王道銀行) to launch a representative office in Sydney, Australia, after in February allowing Taipei Fubon Commercial Bank (台北富邦銀行) to open a branch in Mumbai, India.
During the first four months of this year, new loans to India totaled NT$80.2 billion, topping all other NSP nations, followed by Australia with NT$32 billion, Singapore with NT$18.2 billion and Vietnam with NT$13.1 billion, commission data showed.
By individual banks, Taipei Fubon was the most active with new loans of NT$18.9 billion in the first four months, ahead of CTBC Bank’s (中國信託銀行) NT$18 billion and Bank SinoPac’s (永豐銀行) NT$10 billion, followed by Taishin International Bank (台新銀行) with NT$9.7 billion and Chang Hwa Commercial Bank (彰化銀行) with NT$9.3 billion, the data showed.
Overall, Taiwanese banks’ outstanding loans to the 18 nations at the end of April totaled NT$1.74 trillion, the data showed.
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