Taipei, March 19, 2010 (CENS)--Aiming to enhance asset quality, Taiwan`s seven leading banks posted declining outstanding loans totaling US$47.16 million in February from the preceding month, according to the respective banks.

The seven leading banks are Land Bank of Taiwan, Bank of Taiwan, Chang Hwa Bank, First Bank, Hua Nan Bank, Medium Business Bank of Taiwan, and Taiwan Cooperative Bank.

The ones with the best asset quality are the Land Bank of Taiwan, Bank of Taiwan and Chang Hwa Bank, which posted overdue loan rates of 0.73%, 1.04% and 1.16% at the end of February, respectively.

Taiwan`s Financial Supervisory Commission demands local banks to improve asset quality to qualify to set up subsidiaries in China, hence driving leading domestic banks to aggressively reduce late repayments.

The Bank of Taiwan posted overdue loan rate climbing slightly to 1.04% because of an increase of US$13.49 million in overdue loans in February. Land Bank of Taiwan, Taiwan Cooperative Bank, First Bank, Chang Hwa Bank, Medium Business Bank of Taiwan posted late repayments totaling US$14.68 million, US$20.84 million, US$660,370, US$11 million, and US$11.38 million in February, respectively.

(by Ben Shen)