Taiwanese banks’ bad loans fell in May

The coverage ratio of allowances for NPLs rose to 811.56%.

The non-performing loans (NPL) ratio of Taiwanese banks fell in end-May amidst an increase in outstanding loan value.

Total outstanding loans extended by 38 domestic banks in Taiwan rose by $9b to $1.24t as of end-May, according to data from the Financial Supervisory Commission (FSC) released in July 2024.

Overall NPLs of these banks was $2.06t, a $0.37m decrease from a month earlier.

The average NPL ratio remained at 0.17% in June, a 0.01 percentage point (ppt) increase compared to April.

Coverage ratios of allowances for NPLs rose by 3.49 percentage points, to 811.56% versus 808.07% in the previous month.

(US$1 = NT$32.42)