China remained the largest debtor to Taiwan as Taiwanese banks’ exposure to the giant neighbor continued to hit a new high as of the end of September 2014.
According to statistics released by Taiwan’s central bank, outstanding international claims by Taiwanese banks to China on a direct risk basis at the end of the third quarter last year totaled US$53.59 billion. That’s up from US$52.02 billion recorded at the end of the second quarter.
On an ultimate risk basis, which calculates a country’s consolidated debts after risk transfers, Taiwanese banks’ exposure to China hit US$94.09 billion, up from the second quarter’s US$92.65 billion.
On a direct risk basis, the central bank said Luxembourg ranked as the second largest debtor to Taiwan, followed by Hong Kong, the United States, the British West Indies, and the Cayman Islands.
International claims to the top ten debtors accounted for 77.4% of Taiwanese banks’ total exposure.