Taiwan's financial holding companies reported combined overseas exposure of NT$31.4782 trillion in the second quarter, up 2.8% from the prior quarter and a new record. The United States held its 45-quarter run as the largest market at NT$11.1 trillion, while Japan's exposure grew 45.9% year on year to NT$1.6 trillion, the fastest pace among the top 10 countries.
Why did overseas exposure hit a record NT$31.4782 trillion in the second quarter?
Taiwan's financial holding companies' combined overseas exposure reached NT$31.4782 trillion in the second quarter, up 2.8% from the first quarterCITE:E1. The figure marks another all-time high for the metric, which the Financial Supervisory Commission (FSC) tracks quarterly across all financial holding groupsCITE:E8.
Why has the United States remained the top overseas exposure market for 45 straight quarters?
The United States has stayed Taiwan's largest overseas exposure market for 45 consecutive quarters, with second-quarter exposure of NT$11.1 trillion, up 4.48% from the first quarterCITE:E4. The US now accounts for 35.45% of Taiwan's total overseas exposure, a share that edged higher from the prior quarterCITE:E9. Measured year over year, US exposure grew 16.7%, ranking third among the top 10 countries by annual growth rateCITE:E2.
Why did Japan post the fastest exposure growth among the top 10 countries?
Japan led all top-10 countries with 45.9% annual exposure growth, reaching NT$1.6 trillion in the second quarterCITE:E2. Japan first broke into the top three overseas exposure countries in the first quarter of this year and held that third-place ranking in the second quarterCITE:E6. Quarter over quarter, Japan's exposure rose 4.3%, driven mainly by growth in net investments, while the 45.9% annual increase was driven mainly by growth in net loansCITE:E10.
How do China and Australia compare among the remaining top exposure countries?
China stayed the second-largest overseas exposure market at roughly NT$2 trillion, up 3.4% from the first quarter and 6.4% from a year earlierCITE:E5. Australia's second-quarter exposure was about NT$1.5 trillion, up 2.34% quarter over quarter and 29.8% year over year — the second-fastest annual growth rate among the top 10 countries, behind only JapanCITE:E7.
What is the disclosure framework behind these quarterly figures?
The FSC has published financial holding companies' combined domestic and overseas exposure data every quarter since the second quarter of 2015CITE:E3. Under this framework, overseas exposure is calculated as the sum of three items: net interbank placements, net loans, and net investmentsCITE:E3.
Exposure by country: size versus growth
| Country/Total | Q2 Exposure | QoQ Change | YoY Change |
|---|
| Total overseas exposure | NT$31.4782 trillion | +2.8% | — |
| United States | NT$11.1 trillion | +4.48% | +16.7% |
| China | ~NT$2 trillion | +3.4% | +6.4% |
| Japan | NT$1.6 trillion | +4.3% | +45.9% |
| Australia | ~NT$1.5 trillion | +2.34% | +29.8% |
Sources: CITE:E1 CITE:E4 CITE:E5 CITE:E2 CITE:E6 CITE:E7 CITE:E9
What does this mean?
The United States still anchors more than a third of Taiwan's total overseas exposure and has done so for 45 straight quartersCITE:E4, but it no longer leads on growth: Japan and Australia, ranked third and fourth by size, posted the two fastest annual growth rates among the top 10 countries at 45.9% and 29.8%, respectivelyCITE:E2. China, the second-largest market by size, grew more slowly than either of them at 6.4% annuallyCITE:E5. Japan's rise is recent — it only entered the top three for the first time in the first quarter of this year and has now held that position for two consecutive quartersCITE:E6.