Financial Holdings' Overseas Exposure Hits Record NT$30.6 Trillion in Q1, Japan Enters Top 3 for First Time
Taiwanese financial holding companies' overseas exposure reached a record NT$30.6 trillion in the first quarter of this year, partly due to the depreciation of the New Taiwan Dollar. Notably, exposure to Japan surged by 41.46% year-on-year, making it into the top 3 for the first time, reflecting increased investment by financial institutions in the Japanese market.
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Central News Agency
(Central News Agency reporter Su Ssu-Yun, Taipei, 3rd) Taiwanese financial holding companies' overseas exposure reached a record NT$30,618.8 billion in the first quarter of this year. The New Taiwan Dollar's 1.69% depreciation in Q1 also contributed to the record high exposure, marking a 5.13% year-on-year increase. Among these, the United States remained the largest overseas exposure country for financial holding companies for 44 consecutive quarters, but its proportion dropped to 34.89%. The top 10 ranking saw a reshuffle, with Japan climbing to third place for the first time, and its exposure amount increasing by 41.46% year-on-year.
The Financial Supervisory Commission (FSC) has been disclosing quarterly statistics on financial holding groups' domestic and overseas exposure since Q2 2015. Overseas exposure is the sum of interbank deposits, net loans, and net investments. Since the overseas exposure amount is converted to New Taiwan Dollars, the data is often influenced by exchange rates.
Financial holdings' overseas exposure in Q1 this year reached NT$30,618.8 billion, setting a new historical high, with a quarterly increase of 2.99% and a year-on-year increase of 5.13%. This was mainly driven by net loans, while interbank deposits and net investments both showed a quarterly decrease. The outbreak of the US-Iran war and severe fluctuations in the capital market also led to an unusual negative NT$390 billion in overseas investment valuation losses.
Observing the top 10 regions for financial holdings' overseas exposure, they are in order: the United States, China, Japan, Australia, France, the United Kingdom, South Korea, Hong Kong, Canada, and the United Arab Emirates. From a year-on-year change perspective, Japan ranked first with a 41.46% increase, followed by Australia with 18.41%, and South Korea with 9.53%.
Compared to Q4 last year, the ranking also saw a major reshuffle. Japan jumped from 6th to 3rd place for the first time, France dropped from 3rd to 5th, and the UK slipped from 5th to 6th.
The US's Q1 exposure amount of NT$10,681.9 billion firmly held the top spot, remaining the largest overseas exposure country for financial holdings for 44 consecutive quarters, with a quarterly increase of 1.88% and a year-on-year increase of 3.15%. However, its share of total overseas exposure declined to 34.89%. China remained the second-largest overseas exposure country, with an exposure amount of NT$1,950.6 billion, a quarterly decrease of 1.8% and a year-on-year decrease of 4.65%, mainly due to a decline in net investments and interbank deposits.
Japan has generally hovered around 7th to 8th place in recent years, moving up to 6th last year. It is worth noting that despite the continuous weakness of the Japanese yen, with financial holding companies continuously increasing their presence in Japan, Japan has for the first time jumped to 3rd place in financial holdings' overseas exposure, with an amount of NT$1,578.2 billion, a quarterly increase of 23.36% and a year-on-year increase of 41.46%. The momentum was mainly driven by net loans.
Financial industry insiders point out that Japan, as Taiwan's third-largest trading partner, has close bilateral economic and trade interactions. Coupled with TSMC's recent factory establishment in Japan, the Bank of Japan's policies have driven more Taiwanese manufacturers to expand production in Japan, increasing demand for factory financing, working capital, and trade capital flows. (Edited by Lin Hsing-Meng) 1150503
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(Central News Agency reporter Su Ssu-Yun, Taipei, 3rd) Taiwanese financial holding companies' overseas exposure reached a record NT$30,618.8 billion in the first quarter of this year. The New Taiwan Dollar's 1.69% depreciation in Q1 also contributed to the record high exposure, marking a 5.13% year-on-year increase. Among these, the United States remained the largest overseas exposure country for financial holding companies for 44 consecutive quarters, but its proportion dropped to 34.89%. The top 10 ranking saw a reshuffle, with Japan climbing to third place for the first time, and its exposure amount increasing by 41.46% year-on-year.
The Financial Supervisory Commission (FSC) has been disclosing quarterly statistics on financial holding groups' domestic and overseas exposure since Q2 2015. Overseas exposure is the sum of interbank deposits, net loans, and net investments. Since the overseas exposure amount is converted to New Taiwan Dollars, the data is often influenced by exchange rates.
Financial holdings' overseas exposure in Q1 this year reached NT$30,618.8 billion, setting a new historical high, with a quarterly increase of 2.99% and a year-on-year increase of 5.13%. This was mainly driven by net loans, while interbank deposits and net investments both showed a quarterly decrease. The outbreak of the US-Iran war and severe fluctuations in the capital market also led to an unusual negative NT$390 billion in overseas investment valuation losses.
Observing the top 10 regions for financial holdings' overseas exposure, they are in order: the United States, China, Japan, Australia, France, the United Kingdom, South Korea, Hong Kong, Canada, and the United Arab Emirates. From a year-on-year change perspective, Japan ranked first with a 41.46% increase, followed by Australia with 18.41%, and South Korea with 9.53%.
Compared to Q4 last year, the ranking also saw a major reshuffle. Japan jumped from 6th to 3rd place for the first time, France dropped from 3rd to 5th, and the UK slipped from 5th to 6th.
The US's Q1 exposure amount of NT$10,681.9 billion firmly held the top spot, remaining the largest overseas exposure country for financial holdings for 44 consecutive quarters, with a quarterly increase of 1.88% and a year-on-year increase of 3.15%. However, its share of total overseas exposure declined to 34.89%. China remained the second-largest overseas exposure country, with an exposure amount of NT$1,950.6 billion, a quarterly decrease of 1.8% and a year-on-year decrease of 4.65%, mainly due to a decline in net investments and interbank deposits.
Japan has generally hovered around 7th to 8th place in recent years, moving up to 6th last year. It is worth noting that despite the continuous weakness of the Japanese yen, with financial holding companies continuously increasing their presence in Japan, Japan has for the first time jumped to 3rd place in financial holdings' overseas exposure, with an amount of NT$1,578.2 billion, a quarterly increase of 23.36% and a year-on-year increase of 41.46%. The momentum was mainly driven by net loans.
Financial industry insiders point out that Japan, as Taiwan's third-largest trading partner, has close bilateral economic and trade interactions. Coupled with TSMC's recent factory establishment in Japan, the Bank of Japan's policies have driven more Taiwanese manufacturers to expand production in Japan, increasing demand for factory financing, working capital, and trade capital flows. (Edited by Lin Hsing-Meng) 1150503
Choose to stand with facts; every sponsorship you provide is the power to protect press freedom.
Download the Central News Agency 'First-Hand News' APP to instantly grasp the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.