U.S. tops Taiwan banks' foreign exposure list, surpassing 30% share for first time
Taiwan's central bank reports that the United States remained the largest debtor of Taiwanese banks for the 44th consecutive quarter, with its share of total exposure climbing above 30% for the first time.
Data released by Taiwan's central bank show that U.S. exposure on an immediate counter-party basis reached US$222.53 billion at the end of the second quarter, marking the 44th straight quarter the United States has been the top debtor. The increase of 6.47% from the prior quarter reflects growth in interbank loans and fund deposits in U.S. marketable securities, according to deputy head Hsieh Jen-chun. Total international claims by Taiwanese banks rose 4.61% to US$735.0 billion, driven by lending to the global non-bank private sector.
The United States now represents 30.28% of the banking sector’s total exposure, a new high, while Luxembourg and China rank second and third with US$54.84 billion and US$51.76 billion respectively. The gap between U.S. and China exposure widened to US$170.7 billion, a level maintained for 13 quarters. Exposure to the top ten debtor nations totaled US$546.62 billion, or 74.37% of all international claims.
Why it matters
The shift shows growing financial reliance on the U.S., affecting Taiwan's banking risk profile and foreign-exchange exposure.
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