By Crystal Hsu /
Taiwanese banks slightly increased their overseas lending in the first quarter of this year, with most of the expansion directed toward large, familiar markets and private-sector borrowers, keeping their external risk exposure geographically concentrated, the central bank said yesterday.Total foreign claims based on a direct risk basis rose to US$702.55 billion by the end of March, up 2.5 percent from three months earlier, mainly driven by higher exposure to the US, while exposure to China edged lower.The US remained the largest destination for Taiwanese banks’ overseas claims for the 43rd consecutive quarter, with exposure climbing to US$209.01 billion, supported by higher holdings of securities, increased deposits with US Federal Reserve banks and additional lending activity, the central bank said.
A staff member stands beside the Taiwanese central bank logo in Taipei on Feb. 26, 2018.
By contrast, exposure to China declined to US$49.32 billion, reflecting reduced interbank placements and lower lending amid weaker economic conditions and ongoing structural pressures — including a soft property market and shifting global supply chains, the bank said.Despite the decline, exposure to China has remained broadly stable at about US$50 billion over the past year, it added.
