Taiwanese banks' lending to New Southbound Policy nations surges, exceeding targets

Taiwanese banks are significantly expanding their financial support for countries involved in the "New Southbound Policy," demonstrating robust growth in lending activities. As of the end of July, the total outstanding loans from Taiwanese banks to these 18 target nations reached NT$2.39 trillion (approximately $76 billion USD), a substantial increase from NT$1.99 trillion at the end of last year.

Over the first seven months of the year, lending to these regions surged by NT$394.8 billion, far surpassing the annual target of NT$80 billion. This achievement represents an impressive 493.5% of the set goal, highlighting the aggressive expansion of financial services into Southeast Asia, South Asia, Australia, and New Zealand.

Australia emerged as the top recipient of increased lending, with its loan balance growing by NT$129.3 billion. Vietnam followed, with an increase of NT$86.3 billion, and Singapore saw a rise of NT$77.7 billion. India also experienced significant growth, with lending up by NT$45.7 billion. Officials attribute this heightened demand for credit to the relatively vibrant economic activity in these regions.

Among the financial institutions, Taipei Fubon Bank recorded the largest increase in lending to New Southbound Policy countries, adding NT$45.4 billion. E. Sun Bank followed with an increase of NT$42 billion, while Cathay United Bank, CTBC Bank, and Mega Bank also made significant contributions, with increases of NT$38.8 billion, NT$36.8 billion, and NT$33.5 billion, respectively. This expansion is part of a government initiative launched in 2017 to bolster economic ties and financial support for these key partner nations.

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The economic activity in relevant regions is relatively active, leading to increased corporate credit demand.