About the Financial Stability Report..1

Abstract…1

I. Overview..1

II. Potential macro environmental risk factors ....15

2.1 International economic and financial conditions ....15

2.2 Domestic macro environment .....24

2.3 General assessment of international and domestic macro environments ...41

III. Financial system assessment.....43

3.1 Financial markets .....43

3.2 Financial institutions....52

3.3 Financial infrastructure ....72

Box I Taiwans common QR code payment standandard...75

Box 2 Potential risks and supervision trends in the use of artificial intelligence (AI)

technology by financial institutions ...83

3.4 General assessment of Taiwans financial system... 89

IV. Measures to promote financial stability...91

4.1 Measures taken by the Bank and the FSC to promote financial stability. ..91

4.2 The Bank will continue to adopt measures to promote financial stability when necessary... 98

Appendix: Financial soundness indicators....99

Explanatory notes: Compilation of financial soundness indicators...104

Abbreviations .... 114