Taiwanese banks are fast disappearing from loan deals with Chinese companies, the latest indication of a collective effort to cut exposure to the world’s second-biggest economy as a housing crisis rages on and geopolitical tensions linger.

The participation rate of the island’s lenders, defined by their involvement in any syndicated or club loan to Chinese borrowers, has dropped to a record low of 1.7% this year, according to a Bloomberg-compiled data series dating back to 2010. The rate peaked at nearly 33% in 2013, before falling to 4% last year.

Up Next

Taiwan Banks’ Participation in China Loans Falls to Record Low