Domestic Banks' Loans to Five Trusted Industries Surge Over NT$100 Billion in One Month, First-Phase Target Achieved Ahead of Schedule

By the end of May, domestic banks' loan balance to the five trusted industries reached NT$4.4351 trillion, a monthly increase of NT$110 billion, according to statistics from the Financial Supervisory Commission (FSC). The total balance increased by NT$200.7 billion compared to the baseline at the end of March, achieving 167% of the first-phase target of NT$120 billion, thus meeting the goal ahead of schedule.

In alignment with the Executive Yuan's approved "Five Trusted Industries Promotion Plan" and in response to industrial development needs, the FSC established the "Incentive Program for Domestic Banks to Provide Loans to the Five Trusted Industries" on February 3 this year, succeeding the previous Six Core Strategic Industries program. The loan recipients include five trusted industries: semiconductors, artificial intelligence, defense, security, and next-generation communications. The program is implemented in three phases, with the first phase running from April to December this year, and a loan growth target of NT$120 billion set for this phase.

The FSC stated that as of the end of May, the loan balance from domestic banks to the five trusted industries reached NT$4.4351 trillion, an increase of NT$110 billion from the previous month. Compared to the baseline at the end of March, the cumulative increase was NT$200.7 billion, achieving 167% of the first-phase loan growth target of NT$120 billion.

Regarding the factors behind the change in loan balances, the FSC noted that banks indicated that many companies adjusted their short- and medium-term borrowings (for general working capital) due to industry characteristics, production cycles, or funding costs.

Examining the loan balances by industry as of the end of May, the defense industry ranked first with NT$2.9058 trillion, followed by the artificial intelligence industry with NT$1.1151 trillion, and next-generation communications with NT$1.018 trillion. In terms of monthly increases, the security industry led with a surge of NT$57 billion, followed by the defense industry with an increase of NT$56.8 billion, and the semiconductor industry in third place with a rise of NT$39.6 billion.

According to FSC statistics, the top five banks with the highest loan balances to the five trusted industries as of the end of May were Taiwan Bank, Mega Bank, First Bank, Land Bank, and Hua Nan Bank. (Edited by Pan Yi-Ching)