02.13.2001
Banks turn in high overdue loan numbers in January

• The 'seven big banks' have announced high overdue loan and ratio numbers for Jan. 2001. Total overdue loans hit NT$385.9b, an increase of NT$17.3b over Dec. last year.

• The big three commercial banks, Chang Hwa (2801 'Zhang Yin'), First Commercial (2802 'Yi Yin') and Hua Nan (2803 'Hua Yin') report respective overdue loan ratios of 6.98%, 6.37% and 6.25%.

• Taiwan Business Bank (2834 'Tai Qi Yin') has overtaken Chang Hwa to report the highest overdue loan ratio of 7.15%, while Chang Hwa has managed to keep its ratio below 7.0%.

• The three commercial banks blame high demand for loan funds in Jan. for the increases. We expect overdue loan ratios to stay high in coming months as the asset quality of the 'big seven' needs time to improve given the slow pace of economic recovery.

WilliamFong@Primasia.com +886-[0]2-2547-8864