August 11, 2005
The average non-performing loans ratio among Taiwan's banks fell 0.25% from 2.71% at the end of May to 2.46% at the end of June, the Financial Supervisory Commission reported in late July. June's ratio is also 1.08% lower than the 3.54% ratio posted for June 2004. This is the lowest bad loans ratio Taiwan's banking community has achieved in recent years.
The value of non-performing loans in Taiwan stood at
NTD 393.7 billion at the end of June, down fell
NTD 37.5 billion from the previous month.
As of July, Taiwan's banking community has adopted new standards for defining overdue loans in order to bring its statistics compilation methods in line with international standards. The FSC, noting that there are still eight domestic banks with expanded non-performing loans ratios of 5% or more, says that it will continue to press Taiwan's banks to adopt aggressive measure aimed at cutting their overdue loans ratios and improving their financial structures.
Taiwan's expanded non-performing loans ratio declined 0.4% from 3.64% at the end of May to 3.24% at the end of June.
Among Taiwan's 47 domestic banks, 39 have already managed to cut their expanded non-performing loans ratios to below 5% and 18 have reduced their ratios to lower than 2.5%.
(United Daily News)
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