Mon, Jul 11, 2016 - Page 16 News List

Bad mortgage loans hit three-year high

Staff writer, with CNA

The ratio of non-performing loans for home mortgages among domestic banks as of the end of May was 0.2 percent, the highest in three years, the Financial Supervisory Commission said last week, citing a weak domestic economy.

Non-performing loans in that category totaled NT$12.3 billion (US$380.73 million) as of the end of May, while the total figure for outstanding home mortgages was NT$6.17 trillion, an increase of US$28.1 billion from the end of April, the commission said.

The bad loan ratio for home mortgages rose from 0.19 percent at the end of April to 0.2 percent as of the end of May, the highest level in three years, the commission said.

The May figure was NT$2.5 billion higher than at the end of last year, when the non-performing loan ratio for home mortgages was 0.16 percent, the commission said.

Overall, outstanding loans at domestic banks totaled NT$25.45 trillion as of the end of May, up NT$55.9 billion from a month earlier, while non-performing loans also increased to NT$71 billion from NT$70.1 billion, the commission said.

The overall bad loan ratio remained unchanged at 0.28 percent as of the end of May, with the non-performing ratio at each of the 39 banks incorporated in Taiwan stood below 1.1 percent, the commission said.

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