INCREASING FIGURES:
The US remained the largest destination of exposure for the 45th quarter, followed by China at NT$2.02tn and Japan at NT$1.65tn for Q2
By Wang Meng-lun and William Hetherington / Staff reporter, with staff writer
Taiwan’s overseas exposure hit a record high of more than NT$31 trillion (US$960.11 billion) in the second quarter, Financial Supervisory Commission (FSC) data released yesterday showed.
Exposure refers to the combined value of net loans, net investments, and interbank deposits and loans.
The FSC has published domestic and overseas exposure statistics on a quarterly basis since the second quarter of 2015. The figures cover subsidiaries of financial holding companies, including banks, insurers, securities firms, futures firms, investment trust and consulting firms, and leasing companies.
Photo: I-Hwa Cheng, AFP
Among the top 10 countries in terms of exposure, Japan recorded the largest annual increase at 45.9 percent, followed by Australia at 29.8 percent and the US at 16.7 percent, the data showed.
Net loans stood at NT$6.83 trillion as of the end of the second quarter, while net investments totaled NT$22.82 trillion, FSC data showed.
Interbank deposits and loans reached NT$1.83 trillion, the data showed.
Overall overseas exposure rose 16.47 percent year-on-year from NT$27.03 trillion as of the end of the second quarter last year to a record NT$31.48 trillion for the same period this year, FSC data showed.
The US remained the largest destination for overseas exposure for the 45th consecutive quarter, with exposure reaching a record NT$11.16 trillion in the second quarter, the data showed.
The US accounted for 35.45 percent of total overseas exposure, close to its highest proportion on record, it added.
China ranked second, with exposure rising 6.4 percent from NT$1.9 trillion as of the end of the second quarter last year to NT$2.02 trillion for the same period this year, the data showed.
China remained the second-largest destination for overseas exposure, although domestic banks said that despite the increase in exposure in the second quarter, the overall trend remains one of contraction.
The rest of the top 10 destinations for overseas exposure were also the same as the first quarter: Japan, Australia, France, the UK, South Korea, Hong Kong, Canada and the United Arab Emirates.
Taiwan Semiconductor Manufacturing Co’s (台積電) expansion in Japan over the past few years has encouraged more Taiwanese companies to expand production there, boosting bilateral trade and investment.
Japan had ranked sixth in terms of overseas exposure during the fourth quarter of last year, but a sharp increase in exposure in the first quarter pushed it to third place for the first time.
Exposure to Japan rose 45.92 percent from a year earlier to NT$1.65 trillion, the fastest growth among Taiwan’s major neighboring countries, the data showed.
Australia’s exposure was about NT$1.5 trillion as of the end of the second quarter, up 2.34 percent from the previous quarter and 29.8 percent from a year earlier, FSC data showed.
Banking industry sources said Australia’s financial market is stable, and banks are optimistic about opportunities in corporate banking and cross-border financing, prompting a number of banks to evaluate establishing branches there.
Additional reporting by CNA