Taiwan bad loans increased by $400m in July

Total outstanding loans increased to $1.19t at the end of July.

Taiwan’s non-performing loans (NPL) reached $1.89b in July, an increase of $400m compared to the previous month, the Financial Supervisory Commission said.

Total outstanding loans extended by the current 39 domestic banks increased by $7.54b as compared to the figure of the previous month and amounted to $1.19t at the end of July 2022. 

The FSC said that the average NPL ratio of the 39 banks remained at 0.16% compared to June, however, NPL ratio was down by 0.05 percentage points compared to July 2021.

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The coverage ratio of allowances for NPLs stood at 839.71%. 

The FSC said the asset quality of domestic banks continuously remained manageable as of the end of July 2022

“Whilst the ratio slightly increased by 9.97percentage points from 829.74% of the previous month, it still remained stable at a higher level. The FSC will request banks to undertake measures to improve asset quality and financial structure on an ongoing basis,” the FSC said.