Bad loans decline

The bad loan ratio, including loans under surveillance, fell slightly to 4.52 percent last month from 4.67 percent in September and 6.08 percent last December, according to government statistics released yesterday.

As of the end of last month, domestic banks had non-performing loans (NPLs) of around NT$688.9 billion, down from NT$711.3 billion in August and NT$886.1 billion last December, said Jong Huey-jen (鍾慧貞), director-general of Bureau of Monetary Affairs under the Financial Supervisory Commission.

Taiwan banks have been aggressive in writing off a total of NT$1.31 trillion in bad loans since 1999, Jong said.

The credit-card NPL ratio has also declined to below one percent, Jong said.

The nation's 54 credit card issuers had released a total of 42.31 million cards up to last month with an average NPL ratio of 0.62 percent -- down from 1.06 percent in August.

Still, the Central Trust of China (中央信託局) and Chung Shing Bank (中興銀行) failed to lower their credit-card NPLs below 3 percent last month. Jong said the two banks will be given a grace period to improve.

The ratio of bad loans for cash-advance cards meanwhile also declined, from August's 1.389 percent to 0.869 percent last month, with a total of 35 card issuers granting NT$214.4 billion in small loans.