TAIPEI (Taiwan News) — The Financial Supervisory Commission (FSC) said Tuesday (Nov. 5) that Taiwan’s total domestic bank loan balance exceeded NT$41.47 billion (US$1.29 billion) in September.

According to the FSC’s statistics, the loan balance of domestic banks increased by NT$302.72 billion in September. Of that figure, corporate investment loans shifted from a decline to a monthly increase of NT$5.4 billion.

The FSC attributes this growth to three main factors: the semiconductor industry’s anticipation of continued development, increased corporate mergers and acquisitions, and funding disbursements from overseas branches, per CNA.

Real estate purchase loans increased by NT$152.3 billion, and working capital loans increased by NT$147.7 billion in September, representing the largest category. Loans for movable property decreased by NT$2.7 billion.

FSC Banking Bureau Deputy Director-General Hou Li-yang (侯立洋) explained that forecast agencies have raised their projections for Taiwan’s economic growth rate this year. This indicates a favorable domestic economic environment, which in turn boosts loan demand, he said.

Hou added that the increase in real estate purchase loans in September was slightly lower than in August due to repayments by real estate developers and the central bank’s new selective credit control measures.

The FSC said for the first three quarters of this year, the pre-tax net profit of domestic banks reached NT$420.68 billion, a 10.3% year-on-year increase.