On 5 Nov 2025, Fitch Ratings has affirmed The Export-Import Bank of the Republic of China's (Taiwan EXIM) Long-Term Issuer Default Rating (IDR) at 'AA', Short-Term IDR at 'F1+', National Long-Term Rating at 'AAA (twn)' and National Short-Term Rating at 'F1+(twn)'. The Outlook is Stable. Fitch has also affirmed the National Long-Term Rating on the senior unsecured bonds at 'AAA (twn)'.
Ratings Driven by Government Support: The IDRs of Taiwan EXIM are driven by its Government Support Rating (GSR), which is aligned with Taiwan's Long-Term IDR(AA/Stable). This reflects Fitch Ratings' expectation of an extremely high propensity of extraordinary support from government, if needed, given the bank's unique and important policy mandate and full government ownership.
Strong Policy Role: Taiwan EXIM is the only policy bank in Taiwan. It aims to support the government's economic and trade policies through the provision of financing, credit guarantees, and credit insurance. It was established under The Export-Import Bank of the Republic of China Act, and is supervised by the Ministry of Finance (MoF). Under this Act,the government is obliged to cover any net losses not offset by the bank's own reserves.
The bank continues to have a strong policy role, particularly in promoting the government's green energy infrastructure development, advancing cross-border economic and tradecooperation, and coordinating financial support initiatives for exporters to mitigate the potential impact from US tariffs. We expect the bank's prominent role to continue, given Taiwan's export-dependent economy.
Government-Backed Funding: We view Taiwan EXIM's refinancing risk as low, and expect the authorities to continue to support funding, given its policy role. The bank does not accept deposits and relies on wholesale funding, while maintaining strong linkages to government. At end-1H25, 39% of its total funding came from the central bank and 20% from other government agencies, with the remainder mainly from interbank and bondissuance.
Strong Capitalisation: Taiwan EXIM's common equity Tier 1 (CET1) ratio was 25.8% at end-1H25 (26.8% at end-2024). We expect the bank to maintain sufficient capital buffers, with ordinary capital injections from government, including approval of a total of TWD10 billion to be distributed over 2023-2027 from the Ministry of Finance's annual budget. Its solid capital structure supports its policy mission to expand international trade and economic activity, as well as its focus on financing public infrastructure and green energy projects.
Prudently Managed Financials: We expect an ongoing trend of balance-sheet management while maintaining moderate profitability as the bank executes government policies. Asset quality is robust, with a non-performing loan (NPL) ratio of less than 0.1% in recent years. The operating profit/risk-weighted assets (OP/RWA) ratio improved to an annualised 1.2% in 1H25, up from 1.1% in 2024, supported by stronger interest income from loan growthand lower provisioning costs.
High National Rating Scale: The National Long-Term Rating of 'AAA (twn)' is at the highest end of the Taiwan national rating scale, reflecting extremely low default risks relative to other issuers based in Taiwan. The Stable Outlook on the national rating is aligned with that on the bank's Long-Term IDR. The senior unsecured bonds are rated at the same level as the bank's National Long-Term Rating, in line with Fitch's criteria.