Banks report NT$1.72bn profits from Southbound countries

Taiwanese banks have reported a combined NT$1.72 billion (US$57 million) in first quarter profits from countries covered under the government's New Southbound policy. That's according to figures released by the Financial Supervisory Commission (FSC) on Tuesday.

The New Southbound policy aims to create closer ties with the countries of South and Southeast Asia as well as Australia and New Zealand. The FSC has worked to promote closer financial links with these countries.

Earlier in the year, the FSC gave Taiwanese banks permission to set up branches and offices at ten places in target countries. It has also increased financing, guarantees, and insurance for banks already active in these areas. At the same time, it is encouraging banks to expand credit for Taiwanese companies that do business in New Southbound policy countries and for locally-based Taiwanese businesspeople.

The additional revenue from countries covered under the New Southbound policy has made the first quarter the most profitable for banks since the government rolled out the policy last year.

Source: Radio Taiwan International