State banks' high-net-worth assets top $1 trillion as deposit ratio hits record low

Domestic banks' assets under management (AUM) for high-net-worth individuals (HNWIs) have surpassed NT$3.2 trillion, demonstrating the continued expansion of domestic banks in serving high-net-worth clients. According to the latest statistics from the Financial Supervisory Commission, as of the end of September 2026, the AUM targeted at high-net-worth clients by domestic banks reached NT$3.2383 trillion, representing a monthly increase of NT$1.294 billion, which indicates that the proportion of high-net-worth clients in banks' asset structures continues to rise. Meanwhile, the number of high-net-worth clients also exceeded 32,326, an increase of 1,730 from the previous month, illustrating that domestic banks have made substantive progress in attracting the wealthy and high-net-worth individuals. This growth trend reflects that domestic banks have successfully targeted and retained high-value clients in the highly competitive wealth management market through differentiated services, professional advisory teams, and asset allocation advantages.

However, it is worth noting that the deposit ratio of high-net-worth clients dropped to 39.3% at the end of September, hitting a new low since April 2022. The deposit ratio refers to the proportion of deposits held by high-net-worth clients within banks relative to their total assets, a metric that has long been regarded as an important parameter for measuring clients' capital liquidity and risk appetite. The declining ratio means that high-net-worth clients are increasingly channeling funds into non-traditional deposit products, such as funds, bonds, stocks, and other derivative instruments, demonstrating a growing demand for high-yield or diversified investments. This trend echoes changes in the global wealth management market, where many high-net-worth investors are adjusting their risk allocations while seeking higher returns to cope with interest rate fluctuations and market uncertainties.

The decline in the deposit ratio of domestic banks' high-net-worth clients poses challenges to banks' capital adequacy and liquidity management. As deposits serve as banks' most stable and lowest-cost source of funding, a declining proportion means that banks must seek alternative funding sources to maintain balance sheet stability. To cope with this change, the Financial Supervisory Commission has begun reviewing relevant regulatory norms, encouraging domestic banks to strengthen asset-liability management, enhance risk assessment models, and adjust capital adequacy requirements under the premise of complying with international standards, so as to ensure that banks retain sufficient risk-buffering capacity amid liquidity changes among high-net-worth clients.

Furthermore, the continuous expansion of the number of high-net-worth clients and AUM in domestic banks also brings new opportunities for Taiwan's financial market. As high-net-worth clients' interest in green finance, ESG investments, and cross-border asset allocation continues to grow, domestic banks can leverage this to expand international business, deepen cooperation with foreign financial institutions, and enhance the competitiveness of Taiwan's financial center. On the other hand, this also prompts Taiwan's financial regulatory authorities to place greater emphasis on the monitoring and risk management of cross-border capital flows to prevent capital outflows from exerting a negative impact on the domestic market.

In summary, the breakthrough in domestic banks' high-net-worth assets under management and the decline in the deposit ratio present a structural shift in the investment behavior of Taiwan's high-net-worth clients. While seizing opportunities for client growth, banks must also face the risks and challenges brought about by funding structure adjustments. If a balance can be struck in the future between upgrading service quality, innovating financial products, and strengthening risk control, domestic banks will be able to maintain a leading edge in global wealth management competition.