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Central Bank of China

PRESS RELEASE Release Date: February 9, 2004




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Non-performing Loans Ratio of Domestic Banks(December 31, 2003)

1.Non-performing loans ratio of Domestic Banks

Unit: %


(table)[EXCEL][PDF]


Note : Consolidated units include domestic banking units, offshore banking units and overseas branches of domestic banks.

2.According to the reporting data provided by domestic banks as of December 31, 2003, the total value of loans outstanding on a consolidated basis was NT$14,563.2 billion and the total value of non-performing loans outstanding was NT$630.6 billion. The average ratio of non-performing loans was 4.33%. Compared with the end of previous quarter, the NPL ratio dropped by 1.29 percentage points.

3.According to the statistics of Joint Credit Information Center, the non-performing loans of domestic banks classified by sector were as follows:


Unit:%

(table)[EXCEL][PDF]




4. At the end of December 2003, the NPL ratio declined from 5.62% at the end of September 2003 to 4.33%, with total loans outstanding increasing by 2.03% and the NPLs outstanding decreasing by 21.33%. The decrease in the NPLs outstanding was mainly attributed to (1) bad loans written off (2) NPLs sold to assets management companies (3) disposal of collaterals and collection of their claims.

5.Outstanding loans under surveillance stood at NT$255.2 billion, including NT$64.1 billion for term loans overdue for 3 months but less than 6 months, NT$29.7 billion for loans with principal not yet overdue or overdue for less than 3 months but with interests payment overdue for more than 3 months but less than 6 months, and NT$161.4 billion for loans of NPL standard but exempt from calculation with approval. The NPLs and loans under surveillance amounted to NT$885.8 billion, accounting for 6.08% of total loans (Table1). The declining value of outstanding loans under surveillance was mainly attributed to Ӗloans reclassified as NPLs Әcustomers starting to service loans again due to business recovery ӗbanks selling loans under surveillance to assets management companies. The value of outstanding loans under surveillance has declined year by year.

The trend in recent years was tabulated as follows.

Unit:NT$ billion

(table)[EXCEL][PDF]





Table 1 Asset Quality Analysis of Local Banks

(December 31, 2003)


Non-Performing Loans and Loans under Surveillance

Unit:NT$ Billion

(table)[EXCEL][PDF]


*:Exempted from calculation included:restructured loans, loans compensated by the Credit Guaranty Fund, loans with sufficient certificate of deposits or reserve, loans affected by the September 21st Earthquake of 1999 to be repaid with an agreement between the borrowers and the banks, loans of which collaterals have been disposed by the court and the proceeds have been distributed definitely but have not been credited, other loans granted approval by the Ministry of Finance.