Non-performing loan ratio decreases

By Joyce Huang  /  STAFF REPORTER

Sat, Jan 02, 2010 - Page 12

The domestic banking sector’s asset quality slightly improved in November, as the non-performing loan (NPL) ratio edged down by 0.06 percentage points month-on-month to 1.29 percent, Financial Supervisory Commission data showed late on Thursday.

DECREASE

Bad loans by the nation’s 37 banks totaled NT$237.3 billion (US$7.4 billion) at the end of November — a decrease of NT$8.1 billion from one month earlier, the commission’s data showed.

The sector granted a total of NT$18.3 trillion in loans in November, NT$141.5 billion up month-on-month, while the coverage ratio — loans covered by banks’ provisions — jumped by 1.58 percentage points month-on-month to 80.70 percent, the data showed.

Thirty-four of the 37 banks had an NPL ratio of less than 2.5 percent, while Bank of ­Panhsin (板信銀行) and Cosmos Bank ­Taiwan (萬泰銀行) had NPL ratios of between 2.5 percent and 5 percent, and 3.82 percent and 3 percent respectively.

HIGHEST RATIO

Chinfon Commercial Bank (慶豐銀行) continued to top the list with an NPL ratio of 14.52 percent at the end of November.

The commission reiterated in a press statement that it would take action to instruct banks with high NPLs to improve their asset quality and financial performance.