TAIPEI (Taiwan News) — The Financial Supervisory Commission said Tuesday that the financial sector is well-positioned to absorb any impact as Taiwan and US trade talks near completion.

The New York Times reported that Taipei and Washington are close to an agreement that would lower US tariffs on Taiwanese imports from 20% to 15%, citing people familiar with the talks. The report said TSMC would also expand US investment, including plans for at least five additional semiconductor fabs.

The FSC said the financial sector’s exposure to the US stood at NT$14.03 trillion (US$443.08 billion) as of the end of November, per CNA. Of that, life insurers accounted for NT$9.68 trillion, domestic banks NT$4.24 trillion, and the securities, futures, and investment trust sectors NT$106.7 billion.

FSC Banking Bureau Deputy Director-General Wang Yun-chung (王允中) said domestic banks remain stable, citing pretax earnings of NT$550.6 billion through November, a non-performing loan ratio of 0.16%, and a loan loss coverage ratio of 855.48%. He said the indicators reflect strong asset quality and stable operations.

Wang said the FSC conducted stress tests last year covering scenarios such as slower global growth, falling property and equity prices, and tariff uncertainty. The results showed banks remain resilient, with tariff rates of either 20% or 15% posing no material risk.

To support industry, Wang said relief measures proposed by business groups have been extended through the end of this year. These include streamlined reviews for new lending and a consultation platform for businesses.

FSC officials added that exposure in securities-related sectors remains within manageable limits, while current tariff measures pose no direct impact on insurers, though risks will continue to be monitored.