l The European sovereign debt crisis continued to deteriorate and led to sell-offs in stock markets around the world. The situation has been more acute in Taiwan by slowed exports and declining confidence.
l Although the risk of exposure to European debt crisis is minimal for most Taiwanese financial institutions, market volatility has raised concerns over consumer and investor confidence that may markedly slow down economic growth next year.
l It has now impossible for Taiwan banks to maintain double-digit growth in 2012 as they did in the first three quarters of 2011. Against such a backdrop, some local banks have turned their attention to tourism, hospitality, medical services, and biotechnology sectors, in an attempt to boost their loan business.
l There could also be some financing needs in merger and acquisition activities since a number of local business conglomerates may decide to take advantage of the investment cuts by manufacturers and larger amounts of loan funds available at most banks.
Interested in subscribing ETRC reports and services?
Please contact us at: email@example.com