Taiwan Bank Lending Hits Record as Personal Borrowing Surges

Taiwan’s Financial Supervisory Commission tracks bank lending as a gauge of household leverage and domestic credit demand. Borrowing has been supported by resilient home purchases and an AI-driven equity rally, encouraging some individuals to combine mortgages, unsecured credit and other financing. The rise of such multilayered borrowing — described locally as “four loans under one roof” — has heightened scrutiny of household debt and repayment capacity.

The FSC said domestic banks’ total lending reached a record in June, driven by a NT$257.5 billion month-on-month increase in personal loans, the largest gain on record. The surge reflected stronger demand for home purchases, short-term liquidity and investment financing. With Taiwan shares buoyed by enthusiasm over artificial intelligence, greater use of leverage by retail investors emerged as a key factor behind the sharp monthly expansion in credit.