The nation’s banks had an average bad loan ratio of 0.41 percent at the end of November, down from 0.43 percent one month earlier, as the sector’s asset quality remained healthy, the Financial Supervisory Commission said yesterday.
Total nonperforming loans were NT$96.5 billion (US$3.22 billion) as of Nov. 30, down NT$3.8 billion from NT$100.3 billion the previous month, the commission said.
The commission said Taiwan’s 39 domestic banks all kept their ratios below the 2 percent regulatory threshold.
The overall coverage ratio — the loans covered by banks’ provisions and a gauge indicating the sufficiency of bad loan reserves — was 285.72 percent in November, up from 274.24 percent in October, the commission said.
Government data show that domestic banks’ aggregate outstanding loans totaled NT$23.25 trillion in November, up NT$115.9 billion on a monthly basis, which the commission said suggested more active lending by banks.
The commission said it will ask underperformers to take more action to strengthen asset quality.
Separately, the commission fined CTBC Financial Holding Co (中信金控) NT$2 million for failing to safeguard customer information in violation of confidentiality rules.
A commission probe found that CTBC Financial let its insurance unit pitch products to customers of its banking subsidiary without securing the customers’ consent.