Central Bank of China

PRESS RELEASE Release Date: August 11, 2003




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Non-performing loan ratio of Domestic Banks(30/06/2003)


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 domestic banks' reporting data as of June 30, 2003, the total outstanding of loans under consolidated basis was NT$ 14,232 billion and the total outstanding of non-performing loans was NT$ 808.7 billion. The average ratio of non-performing loans was 5.68%. Compared to the end of first quarter of 2003, the NPLs' ratio has decreased 0.43 percentage points.

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


Unit:%

(table)[EXCEL][PDF]



4. The NPLs' ratio fell down 0.43 percentage points from March 31, 2003 to June 30, 2003, including that the total loans increased 1.67% and the outstanding of NPLs decreased 5.41%. The decrease of the outstanding of NPLs was attributed to (1) banks sold NPLs to asset management companies; (2) banks wrote off bad loans in large amount; (3) banks disposed of collaterals and the borrowers repaid their debts.

5.The outstanding of loans under surveillance stood NT$325.3 billion, including NT$79.6 billion for term loans overdue for 3 months but less than 6 months, NT$33.4 billion for other loans whose principal not overdue or has been overdue for less than 3 months but with interests payment overdue for more than 3 months but less than 6 months, and NT$212.3 billion for reached NPL standard but exempted from calculation with approval. The NPLs and loans under surveillance totaled NT$1,134 billion, accounting for 7.97% of total loans ( Table1 ). The outstanding of loans under surveillance has decreased NT$24.1 billion since the end of last quarter.

Table 1 Assets Quality Analysis of Local Banks

(June 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 could be extended the due date to repay with an agreement between the borrowers and the banks, loans of which collaterals have been disposed by the court but the proceeds have not been distributed, other loans granted approval by Ministry of Finance.