July 24, 2014 / 12:02 AM / 3 years ago

Fitch: Taiwanese Banks' China Exposure to Double by 2016

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: Taiwanese Banks’ Exposure to China here TAIPEI, July 23 (Fitch) Fitch Ratings in a report released today forecasts Taiwanese banks' aggregate gross China exposure to almost double to 13% of system assets by 2016, driven by short-term trade finance and openings of banks' subsidiaries in China. Fitch estimates Taiwanese banks' aggregate gross China exposure at USD90bn as of end-2013 - a moderate 7% of overall banking system assets. The estimates include exposures not captured in the Financial Supervisory Commission's (FSC) China exposure calculation - mainly short-term trade finance, investment-grade interbank placements, and loans guaranteed by qualified Taiwanese corporate headquarters. With their growing credit exposure to China, an economic downturn in China would likely produce some system-wide negative impact on Taiwanese banks' credit profiles. However, the overall risk would be contained in the near term because their China exposure remains modest and they are focused on lending to Taiwanese corporates operating in mainland China. Asset quality, however, may become an important credit consideration in two to three years, as Taiwanese banks expand further into China and wade into indigenous Chinese entities and local retail markets. The report is available at www.fitchratings.com or by clicking on the link above. Contact: Cherry Huang, CFA Director +886 2 8175 7603 Fitch Ratings Limited, Taiwan Branch Suite 1306, 13F, Tun Hwa N. Rd., Taipei Sophia Chen Director, CPA, CFA +886 2 8175 7604 Jonathan Lee Senior Director +886 2 8175 7601 Media Relations: Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@fitchratings.com. Additional information is available at www.fitchratings.com ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S FREE WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Fitch Australia Pty Ltd holds an Australian financial services licence (AFS licence no. 337123) which authorises it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001.

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below