Taiwan Banks Target New Southbound Markets as Lending Surges in Australia, Vietnam, Singapore and India

Taiwan’s Financial Supervisory Commission continues to support the New Southbound Policy through lending by domestic banks, covering markets including Southeast Asia, South Asia and Australia. Cross-border financing is helping companies expand overseas. Outstanding loans have far exceeded the annual growth target ahead of schedule, reflecting faster expansion by Taiwanese banks in the Singapore and Australian financial markets.

As of the end of May 2026, domestic banks’ outstanding loans to New Southbound countries reached NT$2.25 trillion, up NT$251.2 billion from the end of 2025. The annual target achievement rate rose to 314%. Taipei Fubon Bank, E.SUN Bank and Cathay United Bank recorded the largest increases, with Singapore and Australia providing the main growth momentum.

Taiwan’s Financial Supervisory Commission continues to track domestic banks’ lending exposure to New Southbound Policy countries, reflecting the financial sector’s support for companies expanding into Southeast Asia, South Asia and Australia. Global supply-chain restructuring and semiconductor industry expansion have fueled demand for cross-border financing, prompting private banks to accelerate the development of local operations and corporate banking services.

The FSC said domestic banks’ outstanding loans to New Southbound countries totaled NT$2.2295 trillion as of the end of April 2026, taking the annual target completion rate to 288%. Australia and Singapore provided the strongest new growth momentum, while demand in Vietnam also rose markedly. The figures indicate that corporate investment and production relocation continue to expand regional lending.

Taiwan’s Financial Supervisory Commission sets annual lending-growth targets for domestic banks across 18 countries covered by the government’s New Southbound Policy. Increased lending reflects investment and working-capital demand from Taiwanese and local businesses, while also affecting banks’ overseas expansion and risk management. New lending totaled NT$179 billion in 2025, reaching 246% of the target and providing the benchmark for 2026.

FSC data showed outstanding New Southbound loans at domestic banks reached NT$2.1818 trillion as of March 31, 2026. First-quarter lending increased by NT$182.3 billion, reaching 228% of the annual target, with Taipei Fubon Bank adding NT$30.6 billion and E.SUN Bank NT$21.1 billion. By April 30, outstanding loans had climbed further to NT$2.2295 trillion, with the cumulative increase for the first four months reaching NT$230.1 billion and the achievement rate rising to about 288%.