Taiwan bank loans hit $1.43t in Dec 2025 as bad debts drop

Coverage allowance for NPLs rose to 917.43%.

Total outstanding loans by Taiwanese banks rose in December whilst its value of bad loans fell, according to data from the Financial Supervisory Commission (FSC).

Total outstanding loans extended by Taiwanese banks rose by $10.88b in December 2025 compared to the previous month, amounting to $1.43t.

Non-performing loans (NPLs) of these banks fell by $0.12b to $2.11b during the same period.

The average NPL ratio was 0.15%, down 0.01 percentage point (ppt) from November 2025, and the same as December 2024.

Coverage ratio of allowances for NPLs rose 61.95 ppts to 917.43%.

The asset quality of the 38 domestic banks was “manageable,” the FSC said.

(US$1 = NT$31.438; from FSC data)