Taiwan's Financial Sector Exposure to China Drops to NT$763.8 Billion at End of March, Down 14% YoY
According to statistics from Taiwan's Financial Supervisory Commission (FSC), the total exposure of Taiwan's three major financial sectors (banking, insurance, and securities/futures/trust/investment consulting) to China fell to NT$763.857 billion as of the end of March 2025. This represents a monthly decrease of NT$17.398 billion and a year-on-year decrease of 14.61%. The decline is attributed to China's slowing economic growth and heightened geopolitical risks, leading banks to be cautious in lending, insurers to reduce investments, and securities firms to trim proprietary holdings.
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- 📰 Published: June 3, 2026 at 21:05
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(Central News Agency, reporter Su Siyun, Taipei, 3rd) Statistics from the Financial Supervisory Commission (FSC) show that the combined exposure of Taiwan's three major financial sectors to China reached NT$763.857 billion as of the end of March, a decrease of NT$17.398 billion from the previous month and a year-on-year decrease of 14.61%. The FSC stated that while this is not a new low, it remains at a relatively low level, mainly due to potential changes in related credit extended by domestic banks on a case-by-case basis.
The FSC's statistics cover domestic banks, life insurance and property insurance companies, and securities/futures/trust/investment consulting firms. The largest exposure comes from the banking sector, accounting for approximately 92.7% of the total.
According to FSC data, as of the end of March this year, the total exposure of the three financial sectors to China was NT$763.857 billion, down NT$17.398 billion month-on-month and down 14.61% year-on-year.
Domestic banks' exposure to China as of the end of March was NT$708.67 billion, a year-on-year decrease of 14.15%, with the exposure-to-net-worth ratio at 14.2%. FSC Banking Bureau Deputy Director General Wang Yun-Chung stated that banks are continuously monitoring China risks. Due to slowing economic growth, domestic banks have adopted a cautious and conservative approach to lending and interbank deposits related to China. Although there was a slight increase compared to the end of last year, possibly due to demand from Taiwanese businesses for credit, investment components have decreased.
The insurance sector's exposure to China as of the end of March was NT$48.2 billion, a decrease of NT$1.6 billion month-on-month and a year-on-year decrease of 16.46%. FSC Insurance Bureau Deputy Director General Tsai Huo-Yen stated that the insurance sector's exposure to China is primarily from life insurance companies. Property insurance companies have had zero exposure to China since January 2023. The decrease is related to the heightened political and economic situation and geopolitical risks in China.
The securities/futures/trust/investment consulting sector's exposure to China as of the end of March was NT$6.987 billion, a year-on-year decrease of 38%. FSC Securities and Futures Bureau Deputy Director General Huang Chung-Hao explained that securities firms, considering China's overall economic conditions and geopolitical influences, reduced their proprietary holdings in financial investments, leading to a decrease in exposure. (Editor: Yang Lanxuan) 1150603
The FSC's statistics cover domestic banks, life insurance and property insurance companies, and securities/futures/trust/investment consulting firms. The largest exposure comes from the banking sector, accounting for approximately 92.7% of the total.
According to FSC data, as of the end of March this year, the total exposure of the three financial sectors to China was NT$763.857 billion, down NT$17.398 billion month-on-month and down 14.61% year-on-year.
Domestic banks' exposure to China as of the end of March was NT$708.67 billion, a year-on-year decrease of 14.15%, with the exposure-to-net-worth ratio at 14.2%. FSC Banking Bureau Deputy Director General Wang Yun-Chung stated that banks are continuously monitoring China risks. Due to slowing economic growth, domestic banks have adopted a cautious and conservative approach to lending and interbank deposits related to China. Although there was a slight increase compared to the end of last year, possibly due to demand from Taiwanese businesses for credit, investment components have decreased.
The insurance sector's exposure to China as of the end of March was NT$48.2 billion, a decrease of NT$1.6 billion month-on-month and a year-on-year decrease of 16.46%. FSC Insurance Bureau Deputy Director General Tsai Huo-Yen stated that the insurance sector's exposure to China is primarily from life insurance companies. Property insurance companies have had zero exposure to China since January 2023. The decrease is related to the heightened political and economic situation and geopolitical risks in China.
The securities/futures/trust/investment consulting sector's exposure to China as of the end of March was NT$6.987 billion, a year-on-year decrease of 38%. FSC Securities and Futures Bureau Deputy Director General Huang Chung-Hao explained that securities firms, considering China's overall economic conditions and geopolitical influences, reduced their proprietary holdings in financial investments, leading to a decrease in exposure. (Editor: Yang Lanxuan) 1150603