The Taiwan Financial Supervisory Commission reported that asset quality at Taiwan’s 38 domestic banks remained manageable at the end of August 2026. Outstanding loans rose by TWD 362.7 billion from the previous month to TWD 49.22 trillion, while nonperforming loans declined by TWD 792 million to TWD 67.79 billion. The average nonperforming loan ratio held at 0.14% month over month and fell by 0.02 percentage points from a year earlier. The allowance coverage ratio increased by 22.38 percentage points to 963.6%. The commission will continue requiring banks to improve their asset quality and financial structure.
Taiwan Financial Supervisory Commission reports stable bank asset quality as loans reach TWD 49.22 trillion
Taiwan’s 38 domestic banks reported TWD 49.22 trillion in outstanding loans and TWD 67.79 billion in nonperforming loans at the end of August 2026. The nonperforming loan ratio remained at 0.14%, while the allowance coverage ratio rose to 963.6%.