, Taiwan

Strong SME lending buoys Taiwanese banks' growth prospects

Loans to the SME segment accounted for almost a third of total system loans.

Taiwanese banks are expected to have another steady year ahead as robust lending to small and medium enterprises (SMEs) and secured personal loans will sustain the banking sector’s growth trajectory for the year ahead, according to credit rating agency Fitch.

Loan growth is expected to clock in at a stable 4% as the growth of SME loans continue to surge faster than other lending segments to account for almost a third (29%) of total system loans.

The 90-day bad loan ratios for SME and offshore lending also remained low at below 0.5% each, compared with 0.3% for total loans, indicating a positive credit-cost environment. A recovery in the housing market is also set to spur demand for mortgages in the near-term, Fitch added.

The number of Taiwanese bank branches have also plunged to record lows after hitting 3,417 in 2017 as the country flushes out underperforming segments to streamline operations and move towards digital platforms.

The banking system has ample liquidity in both New Taiwan dollar and US dollar terms, so local banks would be likely to expand foreign currency loans given that the loan to deposit ratio in US dollar terms remains less than 60%. However, growing competition from foreign banks is likely to bear pressure on the profit margins of banks looking to gain greater market share.  

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Most Read

1. Expert

Top News

Lorem Ipsum text in year 2025
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old.
Lorem Ipsum is simply dummy text of the printing and typesetting industry.
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of "de Finibus Bonorum et Malorum" (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, "Lorem ipsum dolor sit amet..", comes from a line in section 1.10.32.

Exclusives

Cropping Issue on Responsive one
Contrary to popular belief, Lorem Ipsum is not simply random text. 
Artificial Inteliigence Testing
Contrary to popular belief, Lorem Ipsum is not simply random text. 
Lorem Ipsum is simply dummy text of the printing and typesetting industry.
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of "de Finibus Bonorum et Malorum" (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, "Lorem ipsum dolor sit amet..", comes from a line in section 1.10.32.
Lorem Ipsum Singapore Business Review
The text to display in the title bar of a visitor's web browser when they view this page. This meta tag may also be used as the title of the page when a visitor bookmarks or favorites this page, or as the page title in a search engine result. It is common to append 'Singapore Business Review' to the end of this, so the site's name is automatically added. It is recommended that the title is no greater than 55 - 65 characters long, including spaces.The text to display in the title bar of a visitor's web browser when they view this page. This meta tag may also be used as the title of the page when a visitor bookmarks or favorites this page, or as the page title in a search engine result. It is common to append 'Singapore Business Review' to the end of this, so the site's name is automatically added. It is recommended that the title is no greater than 55 - 65 characters long, including spaces.