TAIPEI (Taiwan News) — The Federal Supervisory Commission said Tuesday that bank loans reached NT$41.95 trillion (US$1.27 trillion) in November, a NT$160.3 billion month-on-month increase.

The FSC said in a press release that non-performing loans were NT$64.35 billion, a NT$1.64 billion decrease compared to the previous month. These are loans that are subject to late repayment or unlikely to be repaid.

The commission explained that improved exports and economic activities boosted demand for funds from businesses and individuals, resulting in strong loan growth in the first 11 months of last year, per UDN.

However, due to increased payments for goods and matured deposits, the outstanding loans from domestic banks reached NT$41.9 trillion in November, marking a four-month low. Similarly, deposits stood at NT$58.6 trillion, with the growth rate decreasing from 0.76% in October to 0.36% in November.

Reflecting a decline in housing market transactions, real estate loans increased by NT$87 billion in November, marking the second consecutive month below NT$100 billion.

FSC Banking Bureau Deputy Director-General Lin Chih-chi (林志吉) explained that working capital is short-term and linked to inventory needs. He said the recent months’ loan and deposit growth are within normal ranges.

Additionally, the FSC announced Monday that foreign investors’ net capital inflows reached US$37.19 billion last year. The Ministry of Economic Affairs said 2,064 foreign direct investment projects valued at US$7.25 billion were approved from January to November.