By: Su Ssu-yun and Frances Huang
Taipei, March 28 (CNA) The United States was the largest debtor of Taiwan for the 18th consecutive quarter at the end of December, as Taiwanese banks' exposure to Washington hit a new high, according to the central bank.
Data compiled by the central bank showed that outstanding international claims by Taiwanese banks on the U.S. as of the end of December totaled US$89.75 billion, the highest level in history on a direct risk basis, up from US$79.25 billion at the end of September.
The central bank said the growth in exposure to the U.S. market largely reflected an increase in funds Taiwanese banks parked in the U.S. Federal Reserve and a rise in interbank loans to their U.S. counterparts.
On an ultimate risk basis, which calculates a country's consolidated debts after risk transfers, Taiwanese banks' exposure to the U.S. stood at US$86.36 billion as of the end of December, up from US$77.08 billion a quarter earlier. The exposure to Washington on an ultimate risk basis was also the highest among Taiwan's debtor nations. [FULL STORY]