The Taiwan Financial Services Commission published asset quality indicators for Taiwan’s 38 domestic banks as of end-July 2025, showing a small month-on-month rise in non-performing loans (NPLs) and the system-wide NPL ratio, alongside a decline in NPL allowance coverage. Total outstanding loans rose by TWD 529 billion to TWD 43.62 trillion, while NPLs increased by TWD 3.84 billion to TWD 69.73 billion. The average NPL ratio edged up 0.01 percentage points to 0.16% from 0.15% and was unchanged from the same month last year. The coverage ratio of allowances for NPLs fell by 35.72 percentage points to 842.84% from 878.56%. The FSC assessed asset quality as manageable based on these figures and indicated it will continue to require banks to take measures to improve asset quality and financial structure (USD figures use an exchange rate of USD/TWD 29.916).
Taiwan Financial Services Commission 2025-09-09
Taiwan Financial Services Commission reports July 2025 domestic banks’ NPL ratio at 0.16% and coverage ratio at 842.84%
The Taiwan Financial Services Commission reported a slight increase in non-performing loans (NPLs) and the system-wide NPL ratio for Taiwan's 38 domestic banks as of end-July 2025, with a decline in NPL allowance coverage. Total outstanding loans rose by TWD 529 billion to TWD 43.62 trillion, while NPLs increased by TWD 3.84 billion to TWD 69.73 billion. The FSC deemed asset quality manageable and will require banks to enhance asset quality and financial structure.