New Southbound Lending Nears NT$2 Trillion as Overseas Credit Fund Supports Taiwan-Linked Businesses

Taiwan's government has promoted its New Southbound Policy by encouraging domestic banks to expand lending in Southeast Asia, South Asia and Oceania. The Overseas Credit Guarantee Fund provides guarantees that reduce banks' lending risks and help overseas compatriot and Taiwan-owned businesses lacking sufficient collateral secure working capital, making it an important part of the policy's financial support framework.

The Financial Supervisory Commission said domestic banks' outstanding New Southbound loans reached NT$1.9995 trillion in 2025, just NT$500 million short of NT$2 trillion. The Overseas Credit Guarantee Fund has recently continued working with top-performing banks on dedicated lending programs and is actively establishing offices in East and South Asia to strengthen local credit inspections and financing services for overseas compatriot and Taiwan-owned businesses.