03.21.2001
Five major banks book low loan figures

• Taiwan's five largest banks, Bank of Taiwan (unlisted), Taiwan Cooperative Bank (unlisted), Chang Hwa Commercial (2801 'Zhang Yin'), First Commercial (2802 'Yi Yin') and Hua Nan Commercial (2803 'Hua Yin') released loan figures for February. Their combined loans dropped to NT$292b from NT$364b in January, the lowest figure for 22 months.

• The poor showing reflects the normal trend of slower demand at this time of the year. The low NT$2.19b in commercial loans points to low consumer confidence.

• Last month, the weighted average interest rate for loans fell 0.23% to 6.587% from January. The interest rate for commercial lending posted a slight increase to 8.13%.

• The total loans figure of the five major banks is an important indicator for commercial banks. We believe the unfavorable economic outlook and political uncertainty are the primary cause of the decrease in loans. The fewer number of working days in February also pulled the figure down. WilliamFong@Primasia.com (886 2) 2547-8864

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