Lenders to sell debt to boost capital

Others want the funds as they prepare to lend more money to the nation's most creditworthy customers.

"The issue has nothing to do with bad loans," said Y.Y.Chang, senior vice president at International Commercial Bank of China (中國商銀), which planned to sell NT$10 billion of subordinated debt.

"We could use the money to extend new loans."

Bank of Kaohsiung (高雄銀行) also said its planned NT$5 billion bond sale would be used to fund expansion of its loan book.

Shares of the banking and insurance companies on the main TAIEX index fell 12 percent this year, compared with a 6 percent fall in the benchmark TAIEX.