Taiwan Bank Lending to Chinese Firms Declines Amid Uncertainty
- Banks’ share in China offshore deals sinks 74% this year
- Deals involving at least one Taiwan bank tumbled 62% in 2020
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Taiwanese banks’ contributions to offshore loans for mainland Chinese firms fell to their lowest levels in at least 10 years as lenders turn increasingly anxious to limit their credit exposure to the economic fallout of the pandemic and rising political tensions.
The share of Taiwanese financial institutions in China’s offshore syndicated and club loans tumbled to the lowest since at least the first three quarters of 2010 to $362 million-equivalent for 2020 year-to-date, according to data compiled by Bloomberg based on deals with disclosed lender commitments. This is a 74% drop compared to the first three quarters of last year, continuing a downward trend that began in 2018.