Taiwanese Banks Respond to Corporate US Investment Guarantee Mechanism, Offering Cross-Border Financial Support

(CNA Reporter Su Ssu-yun, Taipei, 12th) As global geopolitical changes and supply chain restructuring trends continue to unfold, the United States has become an important strategic hub for critical supply chains such as semiconductors and information and communications technology. Several Taiwanese domestic banks are responding to the "Corporate US Investment Financing Guarantee Mechanism," hoping to provide cross-border financial support to companies expanding into the US. CTBC Bank will invest US$75 million, while Taipei Fubon Bank and Cathay United Bank will each invest US$25 million.

The first phase of fundraising for the "Corporate US Investment Financing Guarantee Mechanism," which assists Taiwanese companies in investing in the US, has been completed. The National Development Council (NDC) held a signing ceremony for the "Corporate US Investment Financing Guarantee Mechanism" letters of intent for investment today. NDC Minister Yeh Chun-hsien stated that a total of 15 public and private banks participated, with the fundraised amount reaching US$575 million. Adding the US$800 million invested by the National Development Fund, the scale of the first phase special fund reaches US$1.375 billion.

CTBC Bank is responding to the policy and supporting companies in deepening their global supply chain layouts. At the NDC's signing ceremony for the letters of intent, CTBC Bank Chairman Chen Chia-wen represented the bank in signing the agreement. The bank will contribute the highest tier amount of US$75 million (approximately NT$2.4 billion), demonstrating the financial sector's firm commitment to supporting companies in expanding into overseas markets.

CTBC Bank is deeply engaged in the US market, owning a New York branch and a Los Angeles representative office, while currently applying to establish a Los Angeles branch and a Texas representative office. It also has a network through its US subsidiary, CTBC Bank USA, which owns 20 branches spread across California, New York, and New Jersey. Equipped with a professional cross-border service team, CTBC Bank can effectively connect Taiwanese companies with local financial needs in the US, providing one-stop cross-border financial support for companies investing in the US.

Cathay United Bank has experience in cross-border services and plans to invest US$25 million (nearly NT$800 million) in the guarantee mechanism. In the future, adhering to relevant regulations and balancing credit quality with risk management, it will support companies' needs for capital deployment and operational transitions during the US investment process.

In terms of cross-border financial services, Cathay United Bank builds a one-stop financial service centered on its global corporate online banking platform, Global MyB2B, covering financial assessment, financing, and subsequent operational management. It assists companies in integrating domestic and overseas account information; for example, a parent company can inquire about and manage its subsidiaries through the platform. In addition, Cathay United Bank offers diverse credit and trade finance services to meet clients' needs for equipment procurement, working capital, and supply chain transactions following overseas investments.

Taipei Fubon Bank passed a resolution in its board of directors meeting on May 13 to participate in the plan by investing US$25 million. Taipei Fubon Bank stated that the US market has a complete industrial ecosystem and a vast market size, making it one of the important overseas investment destinations for Taiwanese companies. Responding to the financing guarantee mechanism this time not only supports national policies but also demonstrates the bank's emphasis on companies' overseas development needs. In the future, it will combine its expertise in corporate finance, cross-border credit, and risk management to actively assist clients in establishing a solid presence in the international market.

Taipei Fubon Bank further pointed out that current corporate investments in the US are not merely isolated factory construction activities; they involve diverse financial needs such as supply chain integration, equipment procurement, working capital deployment, and the formation of industrial clusters. By cooperating with the government this time, the bank can provide more comprehensive financing support to companies with substantial investment needs and growth potential, provided that the principles of prudent credit and risk control are balanced.