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Thai martial law: NT$ 27.8 billion exposure for Taiwan

Thai martial law: NT$ 27.8 billion exposure for Taiwan

Thai martial law: NT$ 27.8 billion exposure for Taiwan

After the Thai military announced martial law Tuesday, Financial Supervisory Commission (FSC) Banking Bureau Deputy Director-General Jean Chiu stated that domestic bank exposure in Thailand totaled NT$27.8 billion including NT$9.6 billion in loans and NT$18.2 billion in investments. Five domestic banks have subsidiary and offices in Thailand which are currently operating normally.

Mega International Commercial Bank has a subsidiary and First Bank, Bank of Shanghai, Cathay United Bank, and Chinatrust Bank have offices in Thailand. Currently there are no particular problems with related loans and investments.

Mega Bank believes that the devaluation of the Thai Baht will be advantageous to Thai exports and the lending business of Mega Bank’s subsidiary. Mega Bank operations in Thailand proceed normally while financing of Taiwanese clients continues. Working capital lines will not tighten and continue to benefit Taiwanese businesses. Mega Bank’s Thailand subsidiary has four branches.

Mega Bank stated that its Thailand subsidiary’s primary business is corporate lending to local Taiwanese businesses. Since Taiwanese businesses are not located in the main conflict venue of Bangkok, Baht devaluation caused by martial law will actually benefit the competitiveness of Taiwanese exports.

As of the end of 2013, Taiwan investments in Thailand totaled US$13.4 billion, Thailand’s third largest foreign currency source behind Japan and the U.S. Investments include the electronics, rubber, steel, and petrochemical industries. Delta Electronics, Cal-Comp, Acer, Kenda Rubber, Duro Ruber, and Namchow are some of the Taiwanese companies located in the environs of Bangkok.


Updated : 2021-05-13 12:12 GMT+08:00