Taiwan banks’ bad loans dropped to $1.86b

NPL ratio remained at 0.16%.

Taiwan’s 39 banks’ non-performing loans (NPLs) totalled $1.86b in August, a decrease of $5.2m from the previous month according to the latest statistics by the Financial Supervisory Commission (FSC).

ALSO READ: BNPL, digital wallets accelerates growth of e-commerce fraud: study

The average NPL ratio of the 39 banks remained at 0.16% compared to the previous month but was down by 0.04 percentage points compared to the same month last year. The coverage ratios of allowances for NPLs increased by 7.36 percentage points and therefore rose to a figure of 847.07% from 839.71% of the previous month. 

Based on the figures, the asset quality of domestic banks is manageable, the FSC said. The FSC will still, however, undertake measures to improve asset quality and financial structure on an ongoing basis.