Taiwan
Banking sector profile — Asia-Pacific
Data as of September 2026 • TGB Intelligence Unit
Banking sector at a glance
Structure and performance
Taiwan's banking system is large relative to the economy and fragmented. At end-July 2026 there were 39 domestic banks, including the Export-Import Bank and the Agricultural Bank of Taiwan, alongside 31 foreign and Mainland Chinese banks with local branches, 23 credit co-operatives and Chunghwa Post's savings and remittances arm. Domestic banks held NT$77.55tn of assets at end-2025, equivalent to 270% of GDP on the central bank's measure. Most large banks sit within the 14 financial holding companies, and the largest single bank, state-owned Bank of Taiwan, accounts for less than 9% of domestic bank assets.
Balance sheets are deposit-funded and highly liquid. Customer deposits provided 78.82% of domestic banks' funding at end-2025 and equity 7.97%, while customer loans made up 57.91% of the uses of funds and debt and equity securities 27.82%. The deposit-to-loan ratio was 138.22%, leaving deposits NT$17.29tn above loans. Real estate-secured credit stood at NT$15.21tn, or 35.42% of total loans, in April 2026. Corporate lending is led by manufacturing, within which the electronics industry accounted for 34.46% of loans at end-2025.
Asset quality and capital are strong. The average NPL ratio was 0.15% at end-2025, with an NPL coverage ratio of 896.47%. Average CET1, Tier 1 and total capital ratios rose to 12.50%, 13.69% and 15.78%, and the leverage ratio to 6.79%. Pre-tax profit reached a record NT$581.9bn in 2025, up 11.62%, on higher net interest and fee income, lifting average ROE to 10.93% and ROA to 0.77%. The average deposit-loan interest rate spread edged up to 1.37% from 1.36%, supported by higher mortgage rates.
The main vulnerabilities are property concentration, household leverage and external shocks. Household borrowing reached NT$25.29tn, or 88.06% of GDP, at end-2025, and the central bank adjusted selective credit controls on seven occasions between December 2020 and September 2024 to curb real estate lending. Exposure to mainland China has fallen to a record-low 14% of net worth, but overseas commercial real estate loans remained weak at end-2025. The central bank cites US trade policy, Middle East developments and market volatility as risks, even as an export boom led it to forecast 2026 GDP growth of 11.48%.
Structural trends
The shifts shaping banking in Taiwan.
Real estate lending fell to 34.44% of total bank loans at end-July 2026, from a 37.61% peak in June 2024, under the central bank's selective credit controls.
Domestic banks' pre-tax profit rose 11.62% to a record NT$581.9bn in 2025, lifting average ROE to 10.93% and ROA to 0.77%.
Domestic banks' exposure to mainland China fell to a record low of 14% of net worth at end-2025, continuing a multi-year reduction.
Loans to the electronics industry reached NT$2.08tn at end-2025, 34.46% of manufacturing credit, up from 33.02% a year earlier.
Leading institutions
Largest banks in Taiwan by total assets.
| # | Bank | Total assets (US$) | Type |
|---|---|---|---|
| 1 | CTBC Financial Holding | US$298.7bn | Universal |
| 2 | Bank of Taiwan | US$218.2bn | State-owned |
| 3 | Mega Financial Holding | US$163.6bn | Commercial |
| 4 | Taiwan Cooperative Bank | US$163.4bn | Commercial |
| 5 | Cathay United Bank | US$156.8bn | Commercial |
| 6 | First Commercial Bank | US$154.3bn | Commercial |
| 7 | E.Sun Financial | US$144.6bn | Commercial |
| 8 | Taipei Fubon Bank | US$144.6bn | Commercial |
Total assets at 31 December 2025 (FY2025): consolidated financial holding company figures for CTBC, Mega and E.Sun (TGB Rankings); bank-level figures from the FSC Banking Bureau for other banks, whose parent groups include large insurers or are not listed here; converted at NT$31.438/US$
Supervision and capital rules
The Financial Supervisory Commission licenses and supervises banks through its Banking Bureau and Financial Examination Bureau, while the central bank sets monetary policy, conducts targeted examinations and applies selective credit controls. Capital rules follow Basel III, with revised rules aligned to the final Basel III reforms adopted from 1 January 2025. Minimum CET1, Tier 1 and total capital ratios are 7%, 8.5% and 10.5%; the six D-SIBs (Cathay United, CTBC, First Commercial, Mega International Commercial, Taipei Fubon and Taiwan Cooperative) hold an additional 2% buffer plus 2% of internal management capital. LCR and NSFR minima are 100%. Deposits are insured by the Central Deposit Insurance Corporation. In 2026 the central bank twice eased loan-to-value caps on individuals' second home loans, to 60% in March and 70% in September.
What changed in 2026
- March 2026: The central bank held the discount rate at 2% and raised the loan-to-value cap on individuals' second home loans from 50% to 60%, effective 20 March.
- March 2026: Bank SinoPac announced a plan to absorb sister bank King's Town Bank, issuing NT$44.76bn of new shares to their common parent, SinoPac Financial Holdings.
- May 2026: The central bank's Financial Stability Report showed domestic banks' 2025 pre-tax profit at a record NT$581.9bn, with the average NPL ratio at 0.15% and capital ratios at record highs.
- September 2026: The central bank kept policy rates unchanged on 17 September, raised its 2026 GDP growth forecast to 11.48% and lifted the second-home loan-to-value cap to 70% from 18 September.
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