Lending extended by Taiwanese banks to China as of the end of March fell further from the end of December. Market analysts attributed the fall to Taiwanese financial authorities’ move to tighten monitoring of banks’ exposure to China.
According to the latest statistics released by Taiwan’s central bank, outstanding international claims by Taiwanese banks to China on a direct risk basis as of the end of the first quarter fell 3.63% from a quarter earlier to US$47.35 billion.
The decline followed a previous 4.3% sequential drop recorded as of the end of December, marking the second consecutive decrease in exposure of local banks to China-based companies or individuals.
However, China remains the largest debtor to Taiwan. Following China, Luxembourg ranks as the second largest debtor. Hong Kong comes in third, ahead of the United States and the British West Indies.