Domestic Bank Deposits in Taiwan Surge by NT$1.05 Trillion in April, Setting New Monthly Record

(Taipei, May 11, reporter Su Sih-Yun) According to statistics released by the Financial Supervisory Commission (FSC), as of the end of April, the total deposit balance of domestic banks in Taiwan reached NT$65.2464 trillion, an increase of NT$1.055 trillion from the previous month—the highest monthly increase on record. The FSC noted that the surge was primarily driven by large inflows of trade proceeds and investment funds from domestic and foreign companies, significantly expanding the deposit base. The cumulative deposit growth for the first four months of the year reached NT$2.154 trillion, also the highest for the same period in history.

The FSC today released data on non-performing loans (NPLs) of domestic banks as of the end of April. There were 38 domestic banks, with total loan balances amounting to NT$46.9254 trillion, up NT$34.56 billion from the previous month. The NPL balance stood at NT$68.49 billion, a decrease of NT$395 million, and the NPL ratio remained unchanged at 0.15% compared to the end of March.

Chang Chia-kuei, Deputy Director-General of the Banking Bureau at the FSC, stated that the record monthly deposit growth was mainly due to large trade receipts and investment inflows from both domestic and foreign enterprises.

Regarding lending, Chang noted that domestic bank loans increased by NT$34.56 billion in April, the second-highest for the month in history, only behind the NT$36.7 billion increase in April 2022. Loan growth was primarily driven by民营企业' inventory buildup, material procurement, and rising operational demands.

However, the April loan increase was lower than the NT$70.77 billion rise in March. Chang explained this was due to large repayments by public and private sector entities, as well as a reduction in overseas loan amounts when converted into New Taiwan dollars due to exchange rate fluctuations.

By borrower category,民营企业 loans increased by NT$21.22 billion, reflecting ongoing capacity expansion needs. Personal loans rose by NT$18.38 billion—the highest for April in history—driven by housing loans, increased demand for personal working capital, and wealth management needs.

Government agencies saw a decrease of NT$5.16 billion due to repayments and short-term fund adjustments. State-owned enterprises increased loans by only NT$1.2 billion, as large firms made early repayments.

By loan purpose, real estate purchases increased by NT$5.46 billion, movable assets by NT$10.1 billion, and corporate investments by NT$8.4 billion—mainly due to disbursements from domestic and international syndicated loans. Working capital loans surged by NT$27.25 billion, the highest for the period on record.

The top three banks in loan growth were CTBC Bank (+NT$13.59 billion), Taipei Fubon Bank (+NT$4.69 billion), and Bank SinoPac (+NT$4.34 billion). In deposits, the top three were CTBC Bank (+NT$19.93 billion), Taishin Bank (+NT$12.65 billion), and Yuanta Bank (+NT$11.46 billion). (Editor: Yang Lan-Hsuan) 1150611