TAIPEI (Taiwan News) — The Financial Supervisory Commission (FSC) said Tuesday (Oct. 15) Taiwan’s cumulative business loans from January to August were NT$406.2 billion (US$12.6 billion), marking the third-highest amount for the same period on record.

According to the FSC’s report, business loans from domestic banks were NT$77.4 billion in August. A major contributor to this growth was an increase in construction loans, the agency said, per CNA.

FSC Banking Bureau Deputy Director Hou Li-yang (侯立洋) said that the increase in loans for construction, operating capital, and post-pandemic revitalization project loans from the Ministry of Economic Affairs (MOEA) contributed to the increased lending to small-to-medium enterprises (SMEs) in August.

Hou said forecasting institutions have raised their economic growth estimates for Taiwan this year, indicating that the economy is likely to perform better than initially expected. However, market uncertainties still exist, so the FSC maintains a cautious attitude toward domestic banks, he added.

According to FSC’s statistics, in the first eight months of this year, Mega Bank led with an increase of NT$57.4 billion in loans to SMEs, followed by SinoPac Bank at NT$56.83 billion, and Chang Hwa Bank at NT$41.2 billion.