Taiwanese banks' level is low compared to peers.
According to Moody's, the current level of reserves to total loans of Taiwanese banks is still low compared to the ratios of its regional peers, mainly because Taiwan’s requirements on general provisions had lagged behind many Asian peers such as in Singapore and Malaysia.
The ratios of their total reserve to total loans are likely to strengthen because the regulator has encouraged banks to raise their general provisions to 1% on normal loans from the current legal requirement of 0.5%.
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