Taiwan Banks’ First-Quarter SME Lending Rises NT$150.8 Billion, Second-Highest Gain in a Decade

Taiwan's Financial Supervisory Commission continues to track domestic banks' lending to small and medium-sized enterprises as a key gauge of companies' access to funding and economic momentum. Rapid growth in the AI industry has prompted businesses across its supply chain to expand operations, increasing demand for both equipment investment and working capital. This has become the main driver of lending growth at domestic banks.

Outstanding SME loans at domestic banks reached NT$11.1112 trillion at the end of April, the highest level on record for that point in the year. Lending in April and in the first four months of the year also set records for their respective periods. New lending during the first four months reached 44.55% of the FSC's full-year target, putting banks on track to meet the annual goal.

Small and medium-sized enterprise lending is an important gauge of corporate investment appetite and economic momentum. Taiwan’s Financial Supervisory Commission Banking Bureau said expanding opportunities in AI applications are lifting activity across related supply chains. With SMEs increasingly optimistic about their business outlook, demand for working capital and expansion financing has grown, boosting lending by domestic banks.

At the end of February 2026, domestic banks’ outstanding loans to SMEs were NT$43.949 billion higher than at the end of 2025, the third-largest increase for the period in nearly a decade. Lending rose by about NT$16.4 billion in February 2026 alone, showing that corporate funding demand remained firm after the Lunar New Year and that loan growth stayed strong over the first two months.

Small and medium-sized enterprise lending reflects companies’ investment, inventory and working-capital needs and is also an important gauge of business confidence. Taiwan’s Financial Supervisory Commission compiled data on domestic banks’ credit exposure through the end of January this year. Government policy continues to help SMEs obtain financing through measures including funding support and credit guarantees, while state-owned banks remain the main source of lending over the longer term.

Domestic banks’ lending to SMEs increased by NT$27.6 billion in January, the third-largest January gain on record, signaling stronger corporate financing demand. Taishin International Bank and SinoPac Bank posted the largest monthly increases. At the end of January, state-owned lenders including First Bank and Taiwan Cooperative Bank ranked among those with the largest outstanding SME loan balances.