Taiwan Stock Rally Spurs Early Deposit Withdrawals as Funds Shift to Equities and ETFs

Taiwan’s stock index has repeatedly hit record highs, drawing retail funds out of bank deposits and into the equity market while driving an increase in early withdrawals from time deposits denominated in New Taiwan dollars and foreign currencies. The money is flowing mainly into blue-chip shares and popular ETFs, reflecting competition between deposits and securities investments and potentially affecting banks’ funding allocations and deposit stability.

E.SUN Bank observed that the value of customers’ early withdrawals from New Taiwan dollar and foreign-currency time deposits in March and April rose by more than 10% from previous levels. Although it did not disclose the total amount withdrawn, bankers said the funds were clearly moving into Taiwan stocks and breakout ETFs, showing that the market rally is accelerating retail customers’ asset reallocation.