The Taiwan Financial Services Commission published end-June 2025 asset quality statistics for Taiwan’s 38 domestic banks, showing the average non-performing loan (NPL) ratio declined to 0.15% alongside higher loan balances and a stronger allowance coverage ratio. Total outstanding loans increased by TWD 151 billion to TWD 43.09 trillion (USD 1,441 billion). NPLs fell by TWD 0.94 billion to TWD 65.89 billion (USD 2.2 billion), taking the average NPL ratio down 0.01 percentage points from both the previous month and June 2024. Allowance coverage for NPLs rose by 17.14 percentage points to 878.56%, and the FSC indicated it will continue requiring banks to take measures to improve asset quality and financial structure.
Taiwan Financial Services Commission 2025-08-07
Taiwan Financial Services Commission reports June 2025 domestic banks NPL ratio falls to 0.15% and coverage rises to 878.56%
The Taiwan Financial Services Commission reported a decline in the average non-performing loan (NPL) ratio to 0.15% for Taiwan's 38 domestic banks as of June 2025, with total outstanding loans rising to TWD 43.09 trillion (USD 1,441 billion). NPLs decreased to TWD 65.89 billion (USD 2.2 billion), and the allowance coverage ratio increased to 878.56%. The Commission will continue mandating measures for enhancing asset quality and financial structure.