【December TAIFRI Highlights】
TAIFRI scored 90.2 in December, down 4.4 from November
Stock market price volatility declined sharply
Taiwan P/E raito fell, and volatility slowed significantly. The Taiwan VIX has fallen for three months in a row, reaching a new low for 2022.
Overseas market risks cooling down
The VIX and CDS indexes of the US, China, Japan, and Europe all fell; overseas market risk fell to a nearly 10-month low. Domestic financial market contagion risk has declined for six months, reaching a new low since November 2021, indicating a lower risk of contagion among financial institutions.
Corporate financing costs rose slightly, while corporate lending continued to grow steadily
Overall NPL and bad debt coverage ratios were stable, and capital adequacy was also at a healthy 14%, indicating a sound capital structure. Bank lending to corporates has shown double-digit growth since July, with strong momentum. BBB corporate bond rates continue to rise, however, and the gap with 10-year government bonds has widened to 0.9 percentage points, a record high since 2021.
--For the complete content, please download the file below