China Debt Scrutinized More by Taiwan Banks Eyeing Trade War
- Southeast Asia seen increasingly in focus at some lenders
- Record defaults have stoked concerns about rising risk
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Taiwan’s banks, voracious lenders to Chinese companies in recent years, are starting to cool their appetite as they contemplate the longer-term consequences of the U.S.-China trade war.
Faced with low interest rates at home, Taiwanese lenders -- renowned for their clout in Asia’s syndicated loan market -- poured across into the mainland, so much so that the local regulator capped the amounts they could extend. Some have used up most of their quotas, Financial Supervisory Commission data show. On average, China made up 54 percent of the total book value of Taiwanese banks’ assets last quarter, up from 50 percent at start of 2017.