TSMC’s massive cash pile is helping relieve liquidity pressure in Taiwan’s banking system – and earning higher yields fo…
TSMC’s massive cash pile is helping relieve liquidity pressure in Taiwan’s banking system – and earning higher yields for TSMC, media report. TSMC’s deposit rate jumped to 2.10% from 1.75% in just four months as banks compete for stable deposits (6 to 12 months) to meet strict liquidity rules.
It’s causing pain. State-backed banks are now issuing 1.775% ‘Youth Housing’ mortgages at a 30+ basis point negative spread vs TSMC deposits. The traditional safety net in Taiwan has long been postal savings, but much of that is tied up in NT$600 billion energy loans to TaiPower and CPC Corp. $Taiwan Semiconductor(TSM.US) #Taiwan #Banking #semiconductorsSource: Dan Nystedt
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.