Central Bank of China

PRESS RELEASE Release Date: August 10 ,2001





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Non-performing loan ratio of Domestic Banks(30/6/2001)

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, 2001, the total outstanding of loans under consolidated basis was NT$ 14,360.9 billion and the total outstanding of non-performing loans was NT$ 929.1 billion. The average ratio of non-performing loans was 6.47%. Compared with the end of first quarter of 2001, the percentage points have increased 0.58 .

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


Unit:%

(table)[EXCEL][PDF]


4.The NPLs' ratio rose 0.58 percentage points from March 31, 2001 to June 30, 2001, including that the total outstanding loans grew 0.37% and the outstanding of NPLs grew 10.31% . The increase of total outstanding loans was mainly due to banks' strategy to promote loans on the banks' settlement day for the first half of the year. The increase of the outstanding of NPLs was attributed to(1)the weak fund demand from enterprises owing to the downturn in labor-intense industries;(2)the soaring unemployment due to the individuals being incapable to repay their loans;(3)the sluggish real estate market as a result affecting the banks' collaterals couldn't be sold well ;(4)restructured loans couldn't be repaid on schedule from the borrowers.

5.The outstanding of loans under surveillance stood NT$493.8billion, including NT$156.4 billion for term loans overdue for 3 months but less than 6 months, NT$74.5 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$262.9 billion for reached NPL standard but exempted from calculation with approval. The NPLs and loans under surveillance totaled NT$1,422.9billion, accounting for 9.91% of total outstanding loans.(Table1)

Table 1 Assets Quality Analysis of Local Banks

(June 30,2001)

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.