Source: The China Post
Cosmos Bank (萬泰銀行), a private bank in Taiwan, saw its non-performing loan (NPL) ratio soar past the 3 percent mark to hit 3.55 percent, the highest among 37 domestic banks, according to statistics released yesterday by the Cabinet-level Financial Supervisory Commission (FSC).
FSC tallies showed that Cosmos Bank was the only institution among the 37 domestic banks to record an NPL ratio of over 3 percent last month.
Chang Kuo-ming, deputy director general of the Banking Bureau under the FSC, attributed the high NPL ratio of Cosmos Bank to the failure of the Prince Group to honor its loan repayment to the bank. The group was a former shareholder of the bank.
Cosmos Bank has extended to Prince Group some NT$5.6 billion in total loans, including NT$1.6 billion which are now overdue. But loans to Prince are all secured ones.
Chang said that Prince Group has submitted a plan to the FSC concerning how to dispose of its collateral to repay its loans to Cosmos Bank.
Meanwhile, FSC statistics showed that total outstanding loans recorded by domestic banks as of the end of June amounted to NT$20.708 trillion, with NT$99.5 billion becoming non-performing loans. The resultant NPL ratio of 0.48 percent edged down 0.02 of a percentage point from 0.5 percent recorded in May.