The Taiwan Financial Supervisory Commission reported that the 38 domestic banks’ average nonperforming loan ratio stood at 0.14 percent at the end of June 2026, unchanged from May and down 0.01 percentage points from a year earlier. Nonperforming loans declined by TWD 1.18 billion during the month to TWD 67.34 billion, while outstanding loans increased by TWD 459.2 billion to TWD 47.81 trillion. The allowance coverage ratio for nonperforming loans rose by 19.7 percentage points to 939.51 percent. The commission assessed banks’ asset quality as manageable and will continue requiring them to improve asset quality and financial structure.
Taiwan Financial Services Commission2026-08-06
Taiwan Financial Supervisory Commission reports bank nonperforming loan ratio steady at 0.14 percent in June
The Taiwan Financial Supervisory Commission reported that domestic banks’ nonperforming loan ratio was unchanged at 0.14 percent at the end of June 2026, while nonperforming loans fell to TWD 67.34 billion. The allowance coverage ratio increased to 939.51 percent, and the commission assessed asset quality as manageable.