Taiwan political shift to pressure banks on China loan exposure

Sean Gladwell - Fotolia

Taiwanese lenders, already under increased regulatory scrutiny over their exposure to a slowing China, could face further headwinds after local elections in Taiwan, where the pro-Beijing Kuomintang (KMT) party lost in five of six large municipalities, writes Shruti Chaturvedi. Taiwan's banks are a key indicator of retail liquidity for loans in Asia, especially from China.