Taiwanese banks' loan book hit $940.4b in May

Loans granted by local banks grew $357.6b in May YTD.

The loan books of Taiwanese banks grew for the third consecutive month of growth as figures rose by $7.42b (NT$230.5b) to a record $940.4b (NT$29.2t) in May, according to data from the Financial Supervisory Commission reported by Taipei Times.

The combined loans granted by the 37 local banks expanded by $357.6b YTD, fuelled by corporate demand for the working capital.

Also read: Can Taiwanese banks maintain stable financial footing?

Meanwhile, bad loans fell by $55m ($1.7b) to $2.26b (NT$70.2b) as of end-May, whilst bad loan ratio dipped 0.01 ppt MoM and 0.003 ppt YoY to 0.24%.

In an earlier report, Fitch Solutions noted that Taiwanese banks’ loan growth is set to slow to 3.2% in 2019 as the negative impact of deepening trade tensions between the US and China threatens borrowing demand from export-oriented manufacturers.