PAID OFF:A fall in lending to China is evidence that warnings over lending to China, even to Taiwanese businesspeople, has been heeded, the finance watchdog said
Date: Jun 20, 2016
By: Staff writer, with CNA
Lending extended by Taiwanese banks to China declined as of the end of March, marking the sixth consecutive quarter of decline at a time when the Taiwanese government is asking the banking sector to tighten their risk control on their exposure to the Chinese market, the central bank said.
Despite the decline, the bank said that China retained the title as the second-largest debtor to Taiwan on a direct risk basis, trailing the US on the back of a fall in Taiwanese banks’ exposure.
As of the end of March, outstanding international claims by Taiwanese banks to China on a direct risk basis stood at about US$43.2 billion, down US$6 billion, or 12.12 percent, from the end of December last year, the statistics showed.
Taiwan’s exposure to the US on a direct risk basis stood at US$64.59 billion as of the end of March, keeping Washington as the largest debtor to Taipei, the data showed. [FULL STORY]