Taylor, 31, who has made three senior appearances for Bradford since arriving on a free transfer from Charlton in the summer, joined the U's for an initial month on Friday in time to make his debut in their home draw with Crawley at the weekend.
Parkinson said: "Colchester have a few defensive problems and they came to us to see if they could take Matt.
"Matt obviously hasn't had the benefit of a pre-season this summer and he really needs a run of games under his belt to get his match sharpness back.
"We cannot offer him that here at the moment, so the Colchester move is one that should work for all parties concerned.
"I feel this loan period can benefit both Matt and ourselves."
- Sports & Recreation