The Taiwan Financial Services Commission published asset quality statistics for Taiwan’s 38 domestic banks as of end-February 2025, showing the average non-performing loan (NPL) ratio held steady at 0.16% despite a small increase in NPL balances. Total outstanding loans rose by TWD 164 billion month on month to TWD 42.76 trillion (USD 1,303 billion). NPLs increased by TWD 0.69 billion to TWD 69.19 billion (USD 2.11 billion), while the average NPL ratio was unchanged from the previous month and the same month last year. Allowance coverage fell by 10.35 percentage points to 835.23% from 845.58%. The FSC described domestic banks’ asset quality as manageable based on these indicators and indicated it will continue requiring banks to take measures to improve asset quality and financial structure.
Taiwan Financial Services Commission 2025-04-08
Taiwan Financial Services Commission reports domestic banks’ non-performing loan ratio unchanged at 0.16% and coverage ratio down to 835.23% at end-February 2025
The Taiwan Financial Services Commission reported that the average non-performing loan (NPL) ratio for Taiwan's 38 domestic banks remained at 0.16% as of February 2025, despite a slight increase in NPL balances. Total outstanding loans rose by TWD 164 billion to TWD 42.76 trillion, while allowance coverage decreased to 835.23%. The FSC considers asset quality manageable and will continue mandating improvements in banks' asset quality and financial structure.