| Summary: | 碩士 === 大葉大學 === 事業經營研究所碩士在職專班 === 94 === Ever since the banking deregulation took place in 1991, the number of commercial banks has increased enormously, which, in turn, has resulted in an intensive competition in Taiwan banking industry. Furthermore, the continuous economic downturn contributed to the worsening non-performing loans (NPL). Thus, the relation between NPL and a bank performance or even a bankruptcy has been taken seriously.
The fast-growing NPL in Taiwan has worsened the asset quality of banking industry and inevitably invade the profitability. An enormous amount of NPL not only make banking institutions become more conservative in granting a loan, but also impose a negative effect on a nation’s economic development. Therefore, if NPL can be recovered efficiently and managed effectively, then the banking industry will be healthier and, in turn, are more capable of making contributions to the financial stability and business developments.
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