The Taiwan Financial Services Commission published end-December 2024 asset-quality data for Taiwan’s 38 domestic banks, showing the average non-performing loan (NPL) ratio was unchanged at 0.15% from the prior month as NPL balances declined and allowance coverage increased. Total outstanding loans rose by TWD 248 billion month on month to TWD 42.21 trillion (USD 1,288 billion). NPLs fell by TWD 3 billion to TWD 61.4 billion (USD 1.87 billion), while the average NPL ratio was 0.01 percentage points higher than the same month a year earlier. Allowance coverage of NPLs increased by 53.45 percentage points to 935.2% from 881.75%. The commission assessed domestic banks’ asset quality as manageable based on these figures and stated it will continue to require banks to take measures to improve asset quality and financial structure on an ongoing basis.
Taiwan Financial Services Commission 2025-02-11
Taiwan Financial Services Commission reports December 2024 domestic banks’ NPL ratio steady at 0.15% with coverage ratio rising to 935.2%
The Taiwan Financial Services Commission reported that the average non-performing loan (NPL) ratio for Taiwan's 38 domestic banks remained stable at 0.15% in December 2024, with NPL balances decreasing and allowance coverage rising. Total outstanding loans increased by TWD 248 billion to TWD 42.21 trillion, while NPLs fell by TWD 3 billion to TWD 61.4 billion. The commission deemed asset quality manageable and will continue mandating banks to enhance asset quality and financial structure.