Taiwan's Housing Loans: Are They Safe Despite Rising Delinquencies?

Despite a seven-month climb in overdue loan amounts, Taiwan's Financial Supervisory Commission (FSC) assures the public of manageable risk.

According to the Financial Supervisory Commission (FSC), as of the end of February, the outstanding balance of housing loans in Taiwan's national banks reached NT$11.0694 trillion, a 9.74% increase compared to the same period last year. This growth rate is slightly lower than that of January. However, the amount of overdue loans has been climbing for seven consecutive months. Officials from the FSC have stated that the increase in overdue loan amounts is due to the larger overall business volume. They also stated that the overdue loan ratio remains within normal parameters, indicating no credit risk concerns.

The FSC's statistics indicate that as of the end of February, the outstanding balance of housing loans (including delinquent loans) handled by domestic banks was NT$11.0694 trillion, with the annual growth rate dropping to 9.74%. The outstanding balance of construction loans (including delinquent loans) handled by national banks reached NT$3.8430 trillion, with the annual growth rate also cooling to 5.26%.