Financial Holding Companies' Overseas Exposure Surpasses NT$31 Trillion for First Time, US Leads at NT$11 Trillion

Taiwanese financial holding companies have significantly expanded their overseas investments, reaching an unprecedented NT$31.47 trillion by the end of the second quarter of 2026. This marks the first time the total overseas exposure has surpassed the NT$31 trillion threshold, setting a new historical record.

The United States continues to be the primary destination for these investments, with exposure amounting to NT$11.16 trillion. This figure represents the largest overseas exposure for 45 consecutive quarters and has now broken the NT$11 trillion mark for the first time. The U.S. accounts for approximately 35.45% of the total overseas exposure. China has seen its exposure rebound, ranking second globally with NT$2.01 trillion, while Japan's exposure has grown substantially, placing it third with NT$1.64 trillion and showing a significant year-on-year increase of 45.92%.

Regulators, including the Financial Supervisory Commission (FSC), are closely monitoring these overseas exposures. The FSC stated that the overall asset quality of domestic banks remains sound and that risks are considered controllable. They also highlighted ongoing financial supervision and monitoring efforts through the Central Deposit Insurance Corporation. The increase in exposure to Japan is attributed to close bilateral trade relations and Taiwanese companies, such as TSMC, establishing operations there.

Other major destinations for Taiwanese financial holding companies' overseas exposure include Australia, France, the United Kingdom, South Korea, Hong Kong, Canada, and the United Arab Emirates, with their rankings remaining largely unchanged in the top 10.