Loans extended by banks registered in Taiwan as of the end of April fell as the local economy showed signs of weakening.
According to data compiled by the Financial Supervisory Commission, the top financial regulator in Taiwan, outstanding loans extended by Taiwanese banks as of April fell NT$121.7 billion (US$3.93 billion) from a month earlier to NT$24.95 trillion. The magnitude of the monthly loan decline was the steepest in more than seven years.
The commission attributed the decline to the fact that the local economy has been affected by falling global demand. This dragged down the country’s trade, causing fund demand in Taiwan to fall.
The commission also said that a relatively stronger Taiwan dollar in April deterred Taiwanese companies’ overseas subsidiaries from securing foreign currency denominated loans from local banks’ offshore banking units in the month.