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Central Bank of China
PRESS RELEASE Release Date: November 10, 2003




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Non-performing Loan Ratio of Domestic Banks(30/09/2003)


1.Non-performing Loan 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 September 30, 2003, the total value of loans outstanding on a consolidated basis was NT$14,273.6 billion and the total value of non-performing loans outstanding was NT$801.6 billion. The average ratio of non-performing loans was 5.62%. Compared with the end of previous quarter, the ratio of NPLs dropped by 0.06 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 September 2003, the ratio of NPLs declined from 5.68% at the end of June 2003 to 5.62%, with total loans outstanding increasing by 0.29% and the NPLs outstanding decreasing by 0.88%. The decrease in the NPLs outstanding was mainly attributed to (1) bad loans written off; (2) banks disposed the collaterals and collected their claims;(3) the borrowers paid back their debts.

5.Outstanding loans under surveillance stood at NT$321.3 billion, including NT$80.0 billion for term loans overdue for 3 months but less than 6 months, NT$40.0 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$201.3 billion for loans of NPL standard but exempt from calculation with approval. The NPLs and loans under surveillance amounted to NT$1,122.9 billion, accounting for 7.87% of total loans (Table1). The value of outstanding loans under surveillance has decreased NT$4 billion since the end of last quarter.

Table 1 Asset Quality Analysis of Local Banks

(September 30, 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 Funds, loans with sufficient certificate of deposits or reserve, loans affected by the September 21st Earthquake of 1999 repay 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 Ministry of Finance.