Taiwan banks' average overdue loan ratio, including assets under surveillance, fell to 4.89 percent during the first half of this year, compared to 6.08 percent on Dec. 31 last year and 7.97 percent a year earlier, according to a quarterly report issued yesterday by the nation's central bank.
As of June, Taiwan banks had non-performing loans (NPLs) of around NT$740.5 billion, down from NT$886.1 billion in December last year, according to the Central Bank of China's (CBC) statistics.
The decreasing NPL ratios of domestic banks show that the government's continued efforts to push for financial reforms have paid off, with many banks having dropped their overdue loan ratios to below 5 percent, as demanded by the government, a CBC official said.
The overdue loan ratios of the seven major state-run banks have dropped to 2.54 percent on average, the CBC said.
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