Fri, Feb 07, 2014 - Page 13 News List

Bad-loan trend reflects asset quality: FSC

By Crystal Hsu  /  Staff reporter

The nation’s banks had an average bad-loan ratio of 0.38 percent at the end of December last year, down from 0.41 percent a month earlier, signifying continued improvement in asset quality, the Financial Supervisory Commission (FSC) said in a statement released yesterday.

The figures translated into overall bad loans worth NT$89.9 billion (US$2.95 billion) at the end of December last year, down NT$6.6 billion from a month earlier, the statement said.

Each of the 39 domestic lenders kept a bad-loan ratio of less than 2 percent, the statement said, adding that the regulator will urge banks with above-average ratios of bad loans to improve their asset quality and financial structure.

The average coverage ratio rose to 319.18 percent, gaining 33.46 percentage points from 285.72 percent a month earlier, the statement said.

As of late December, the banking sector accumulated outstanding loans of NT$23.66 trillion to meet growing loan demand, an increase of NT$214.1 billion from a month earlier, the statement said.

Separately, the FSC said the nation saw a net inflow of foreign funds valued at US$801 million last month, even though the local bourse shed 1.74 percent.

The fund statistics came after net foreign fund inflows totaled US$13.18 billion for the whole of last year, during which the TAIEX gained 11 percent, the FSC said in a separate statement.

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