Based on the latest data from the Financial Supervisory Commission, Taiwan’s domestic banking sector experienced a significant increase in lending activity during November 2025. This expansion contributed to a massive total loan portfolio held by the nation’s 38 domestic banks by the end of the month. The growth reflects a period of active credit extension across the industry, supporting various sectors of the economy.
While the overall volume of loans reached new heights, the period also saw a marginal rise in non-performing loans compared to the previous month. Despite this slight increase in defaulted debt, the average ratio of these troubled loans remained remarkably low. This suggests that while credit is expanding, the quality of the banks’ assets remains high and stable.
Furthermore, Taiwanese banks continue to demonstrate strong financial resilience through their reserve management. The sector maintained an exceptionally high coverage ratio for non-performing loans, ensuring that banks have more than enough funds set aside to absorb potential losses. This cautious approach to risk management highlights the overall health and security of Taiwan’s financial system during this period of growth.
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