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Bankers Association of Taiwan Releases Annual Report

Challenges Faced by Banking Industry Amid Global Economic Slowdown and Inflation

Taipei, Taiwan - The Bankers Association of the Republic of China has released its annual report for 2022, highlighting the challenges faced by the banking industry in Taiwan amid a global economic slowdown and rising inflation.

International Economic Conditions

According to the report, international economic conditions in 2022 were marked by slower global economic growth, exacerbated by the ongoing COVID-19 pandemic and the Russia-Ukraine war. Key central banks around the world responded by adopting deflationary monetary policies, including raising interest rates to combat inflation.

Taiwan’s Domestic Economy

In Taiwan, domestic economic growth slowed significantly in the second half of 2022, due to declining export demand and a worsening pandemic situation in China. The country’s economy grew by 2.45% in 2022, down sharply from 6.53% in 2021.

Banking Industry Challenges

The report highlights the challenges faced by Taiwan’s banking industry, including:

  • Rising bad debt
  • Increasing competition from fintech companies

However, the sector has shown resilience, with major banks reporting improved profitability and asset quality.

“We are committed to supporting the growth of Taiwan’s economy and promoting financial stability,” said Chih-Wen Hsu, President of Bank of Taiwan and Chairman of the Bankers Association. “We will continue to work closely with regulators and other stakeholders to address the challenges facing the industry.”

Leadership Team

  • Chih-Wen Hsu, President of Bank of Taiwan and Chairman of the Bankers Association

Key Takeaways

  • Global economic growth slowed significantly in 2022 due to the pandemic and war
  • Central banks adopted deflationary monetary policies, including raising interest rates
  • Taiwan’s domestic economy grew by 2.45% in 2022, down from 6.53% in 2021
  • Banking industry faces challenges including rising bad debt and increasing competition from fintech companies

Full Report

The full annual report is available for download on the Bankers Association of Taiwan website.