The Taiwan Financial Services Commission (FSC) released end-January 2025 asset quality statistics for Taiwan’s 38 domestic banks, showing continued loan growth alongside a slight increase in non-performing loans (NPLs). Total outstanding loans rose to NT$42.6 trillion (USD 1,303 billion), while NPLs increased to NT$68.5 billion (USD 2.1 billion) and the average NPL ratio edged up to 0.16%. Month on month, loans expanded by NT$389 billion (USD 11.89 billion) and NPLs rose by NT$7.1 billion (USD 0.22 billion) from NT$61.4 billion (USD 1.88 billion), lifting the NPL ratio by 0.01 percentage points from 0.15%; the ratio was also 0.01 percentage points higher than the same month last year. The coverage ratio of allowances for NPLs fell by 89.62 percentage points to 845.58% from 935.2%. The FSC described domestic banks’ asset quality as manageable and indicated it will continue requiring banks to take measures to improve asset quality and financial structure.
Taiwan Financial Services Commission 2025-03-04
Taiwan Financial Services Commission publishes January 2025 domestic bank NPL ratio at 0.16%
As of January 2025, Taiwan's 38 domestic banks saw loan growth and a slight rise in non-performing loans (NPLs), totaling NT$42.6 trillion (USD 1,303 billion) and NPLs at NT$68.5 billion (USD 2.1 billion). The average NPL ratio rose to 0.16%, with the coverage ratio for NPLs decreasing to 845.58%. The FSC deems asset quality manageable and will require banks to enhance asset quality and financial structure.