Taiwan's central bank held interest rates steady for a tenth straight meeting, and Governor Yang Chin-long says the real problem is not a shortage of money but that it is flowing to the wrong places — bad news for small businesses and old-line manufacturers being squeezed out of bank lending.

• Banks are flush with cash, but they prefer lending to booming AI and electronics firms with stronger credit, leaving traditional industries and small businesses struggling to borrow.
• The central bank is keeping policy tight by managing the amount of money in the system rather than raising rates, and says uneven lending is a structural issue that rate policy alone cannot fix.
• Yang's four fixes: state-owned banks should push money toward companies that need it, and the financial regulator should press private banks to do the same.
• The SME credit guarantee fund should expand guarantees so banks feel safer lending, and Chunghwa Post, which holds huge deposits, should lend out some of that cash.

Outlook: Rates look set to stay on hold, with the government leaning on state banks and regulators rather than the central bank to get credit to lagging industries.