Lending extended by banks operating in Taiwan to China as of the end of December 2014 has fallen from the end of September. But despite the decline in figures, China remained the largest debtor to Taiwanese banks.
According to the latest statistics released by the central bank, outstanding international claims by Taiwanese banks to China on a direct risk basis as of the end of December totaled US$49.14 billion. That’s down 4.3% from a quarter earlier.
On an ultimate risk basis, which calculates a country’s consolidated debts after risk transfers, Taiwanese banks’ exposure to China also fell 7.7% to US$84.16 billion.
Following China, Luxembourg ranked as the second largest debtor to Taiwan as Taiwanese banks' exposure to the country totaled US$40.25 billion as of the end of December on a direct risk basis, ahead of Hong Kong with US$33.59 billion, the United States with US$30.30 billion, and the British West Indies with US$14.31 billion.