Taiwan SME loans reach $310b in December 2021

The FSC also reported numbers on credit card, cash card, and e-payment businesses.

Taiwan’s Financial Supervisory Commission (FSC) said that up until the end of December 2021, the loans extended to small and medium enterprises (SMEs) by domestic banks amounted to NT$8.68b ($310b).

The amount was said to have increased by NT$117.85b ($4.23b) as compared to the amount at the end of November 2021.

According to the FSC’s data, up until the end of December last year, the loans extended to SMEs by domestic banks accounted for 68.48% and 70.83% of total loans extended to total enterprises and private enterprises respectively, increased by 0.87 and 1.14 percentage points respectively as compared to the end of November 2021.

In December 2021, the average non-performing loan ratio of SME loans was 0.27% and decreased by 0.02 percentage point as compared to the end of November 2021.

“The Financial Supervisory Commission continues to encourage domestic banks to promote SME loans with risk control and management in place. The FSC will endeavour to foster a favourable banking environment for small and medium enterprises,” FSC said in a statement.

Cash card, credit card, and e-payment business

Meanwhile, the FSC said it had recorded 52.63 million effective cards in December 2021, amongst which the total active cards numbered 33.79 million.

The balance of revolving credit in December reached NT$101.2b ($3.63b). The amount of undue balance of instalment was approximately NT$163.5b ($5.87b). The amount of monthly retail sales was approximately NT$294.9b ($10.58b). The amount of monthly write-off was approximately NT$210m ($7.53m). The average ratio of delinquency credit (past-due over three months) against account receivables (including non-accrual amounts) was 0.13%.

Meanwhile, for cash cards, there was 340 thousand released by thirteen financial institutions who were engaging in the cash card businesses in Taiwan. The total balance of cash card loans (including non-accrual amounts) was NT$12.6b ($450m). The amount of monthly write-off was approximately NT$20m ($72k). The overall delinquency ratio was 0.843%,

In the e-payment business, there are nine specialised electronic payment institutions and twenty electronic payment institutions currently engaging in other businesses, including dual-status banks, Chunghwa Post Co, Ltd, and electronic stored value cards issuers.

The number of effectively stored value cards totalled 147.43 million whilst the number of cards still in use was around 12.93 million by the end of December 2021.

The amount of monthly retail sales of stored value cards was approximately NT$6.51b ($230m) whilst the balance of stored value was NT$12.32b ($440m).

E-payment account users totalled 15.81 million by the end of December 2021. The monthly amount of funds collected and paid as an agent for real transactions was NT$7.75b ($280m). The monthly amount of funds for engaging in domestic & foreign small-amount remittances business was NT$7.92b ($280m). The monthly amount of stored value funds was NT$17.63b ($630m).

The balance of the e-payment accounts in the e-payment institutions totalled NT$6.82b ($240m)

The FSC also reported that the number of non-cash payment transactions was 1.346 billion, and the total non-cash payment transactions amounted to NT1.46 ($52b) in the third quarter of 2021.

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