TAIPEI (Taiwan News) — Lending by Taiwan’s banks to small and medium-sized enterprises rose NT$550.4 billion (US$17.37 billion) last year, surpassing the government’s NT$460 billion growth target, the Financial Supervisory Commission said Thursday.

Outstanding SME loans reached NT$10.89 trillion in December, per CNA. The increase was driven partly by year-end supplier payments and inventory stocking by businesses.

FSC Banking Bureau Deputy Director General Chang Chia-kuei (張嘉魁) said SME lending rose NT$66.2 billion in December alone, per UDN. Full-year growth ranked fifth-highest over the past 10 years, supported by export expansion and bank participation in financing programs linked to US tariff policies.

CTBC Bank posted the largest increase in SME lending last year at NT$80.1 billion, followed by E.Sun Bank, First Bank, Taipei Fubon Bank and Mega International Commercial Bank.

Total outstanding loans at Taiwan’s 38 domestic banks reached NT$44.82 trillion at end-December, up NT$341.7 billion from the previous month. Overdue loans fell from NT$3.63 billion to NT$66.43 billion, pushing the overdue loan ratio down to 0.15%.

Chang said December lending growth reflected higher year-end working capital demand from companies and increased borrowing for investment, housing, and vehicle purchases. Working capital loans posted the biggest rise, followed by loans for movable assets such as equipment and cars.

Taiwan’s banking sector reported record pre-tax profits of NT$583.6 billion in 2025, up NT$56.3 billion from a year earlier, the bureau said. Higher net interest and fee income offset weaker investment income and narrower interest spreads.