The Taiwan Financial Services Commission published end-May 2025 asset quality statistics for 38 domestic banks, showing the average non-performing loan (NPL) ratio held steady at 0.16% compared with the previous month and was 0.01 percentage points lower than the same month last year. Total outstanding loans fell by TWD 329 billion to TWD 42.94 trillion, while NPL balances decreased by TWD 1.76 billion to TWD 66.83 billion. Allowance coverage for NPLs rose by 14.88 percentage points to 861.42% from 846.54%, with the FSC assessing asset quality as manageable and indicating it will continue requiring banks to take measures to improve asset quality and their financial structure.
Taiwan Financial Services Commission 2025-07-10
Taiwan Financial Services Commission reports May 2025 domestic bank NPL ratio unchanged at 0.16% and coverage ratio rising to 861.42%
The Taiwan Financial Services Commission reported that the average non-performing loan (NPL) ratio for 38 domestic banks remained stable at 0.16% in May 2025, slightly lower than the previous year. Total outstanding loans decreased by TWD 329 billion to TWD 42.94 trillion, while NPL balances fell by TWD 1.76 billion to TWD 66.83 billion. The FSC deemed asset quality manageable and will require banks to enhance asset quality and financial structure.