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U.S. Holds Top Spot as Taiwan's Largest Bank Debtor for 41st Straight Quarter

The United States has maintained its position as the largest debtor to Taiwanese banks for the 41st consecutive quarter, with exposure growing by $4.03 billion to reach $198.9 billion. Luxembourg overtook China to become the second-largest debtor, with exposure rising to $50.77 billion, while China fell to third place at $49.56 billion amid economic concerns and regulatory caution. Total international claims by Taiwanese banks increased by 3.48% to $670.8 billion, driven largely by lending to the global nonbank private sector. The top ten debtor nations collectively account for nearly 74% of Taiwan's banks' total international exposure.

Key Points: U.S. Remains Taiwan's Top Bank Debtor for 41st Quarter

  • U.S. exposure grew to $198.9B
  • Luxembourg overtakes China for 2nd
  • China falls to 3rd amid caution
  • Total international claims hit $670.8B
2 min read

U.S. holds top spot as Taiwan's largest bank debtor for 41st straight quarter

The U.S. is Taiwan's largest bank debtor for the 41st consecutive quarter, with exposure hitting $198.9B. Luxembourg overtakes China for second place.

"concerns about that country's economic outlook - Hsieh Jen-chun, central bank official, on exposure to China"

Taipei, December 29

The United States remains the top debtor of Taiwan banks for the 41st straight quarter. This means the U.S. owes more money to Taiwanese banks than any other country. According to a report by Focus Taiwan, this trend has continued for more than ten years without any change at the top spot.

Citing data released by the central bank, the report shows that the money Taiwanese banks have tied up in the U.S. grew by USD 4.03 billion. This is an increase of 2.07 per cent from the end of June. By the end of September, the total amount reached USD 198.896 billion. The report noted that Hsieh Jen-chun, who is the deputy head of the central bank's Department of Financial Inspection, said the growth happened because banks put more money into U.S. securities and lending.

On the other hand, Luxembourg is now the second-largest debtor to Taiwan's banks. It took the second spot away from China. Exposure to Luxembourg rose by USD 2.72 billion to reach USD 50.77 billion at the end of September. Hsieh said the increase happened because Taiwanese banks put more funds into trust assets in that European country. This is the third quarter in a row that the money kept in Luxembourg has grown.

China fell to the third spot on the list. Even though the money tied up in China rose by about USD 1.07 billion to reach USD 49.56 billion, it is now less than Luxembourg. Hsieh noted that exposure to China stays between USD 40 billion and USD 50 billion. He said that this is due to "concerns about that country's economic outlook." He also mentioned that there is "caution over Taiwan's Financial Supervisory Commission restrictions on lending and investments in China."

Total international claims by Taiwanese banks also went up. These claims include things like loans, investments, and deposits. They rose by 3.48 per cent from the previous quarter to reach USD 670.8 billion. This growth comes from more lending to the global nonbank private sector.

Australia is the fourth-largest debtor with USD 42.14 billion. Other major nations on the list are Japan, Hong Kong, the United Kingdom, Singapore, France, and Vietnam. The top 10 debtor nations together account for USD 496.0 billion. This makes up about 73.95 per cent of all the international money held by Taiwan's banks.

- ANI

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Reader Comments

P
Priya S
Nearly $200 billion to the US! That's a staggering amount. It highlights the immense trust and financial interdependence. For India, strengthening such ties with reliable partners is key for economic security. The shift with Luxembourg overtaking China is very telling of the current global sentiment. 🤔
R
Rohit P
The article mentions "caution over Taiwan's Financial Supervisory Commission restrictions on lending and investments in China." This is a prudent move. Geopolitical tensions necessitate such financial safeguards. Indian regulators also need to be vigilant about where our capital flows, especially in volatile regions.
M
Michael C
While the US being the top debtor shows stability, having over 73% of international claims concentrated in just 10 nations seems like a high concentration risk. Diversification is a fundamental principle. Hope Taiwanese banks are assessing this exposure carefully.
S
Shreya B
The consistent growth for 41 quarters is impressive! It reflects a long-term strategic partnership. For India's growing economy, building such enduring and trustworthy financial relationships across the globe is essential. More power to prudent international banking! 💪
K
Karthik V
Seeing Vietnam in the top 10 is interesting. It's a fast-growing economy in our neighbourhood. This data is a good reminder for Indian banks to also look at promising ASEAN markets for investment, not just the traditional Western hubs. Opportunity is everywhere.

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