Aug 03, 2019 General Comments Off on Credit card spending hit new high in June
Taipei, Credit card spending in Taiwan hit a new monthly record high in June as more and more consumers swiped their cards to pay their taxes during the tax season, according to the Financial Supervisory Commission (FSC).
Data compiled by the FSC, the top financial regulator in Taiwan, showed that credit card holders spent NT$328.2 billion (US$10.46 billion) in June, up NT$60.3 billion, or 22.51 percent, from a month earlier.
Chuang Shiuyuan deputy director of the FSC's Banking Bureau, said it was no surprise that due to the tax season in June, Taiwan tended to see credit card spending spiking in the month.
In the first six months of this year, credit card spending totaled about NT$1.60 trillion, the data shows.
According to an FSC estimate, credit card spending is expected to surpass NT$3 trillion in 2019.
In June, CTBC Bank took the top spot, with consumers spending NT$68.54 billion through credit cards issued by the bank. It was the first time the bank had seen spending through its credit cards breaching the NT$60 billionmark to hit a new high, the FSC said.
E. Sun Commercial Bank came in second with credit card spending NT$47.87 billion, ahead of Cathay United Bank with NT$47.23 billion and Taishin International Bank with NT$35.3 billion, the FSC added.
In the first six months of this year, however, Cathay United Bank ranked No. 1 for credit card spending as consumers used cards issued by the bank to spend a total of NT$271.4 billion, up 9.3 percent from a year earlier, the FSC said.
As of June, a total of 45.32 million credit cards issued by 33 banks were circulating in Taiwan, up 0.29 percent from a month earlier and also up 6.36 percent from a year earlier, the FSC said.
Despite the June increase, the FSC said, the nonperforming ratio of the 33 banks in terms of credit card spending stood at 0.19 percent on average as of the end of the month, down 0.02 percentage points from the end of May.
Meanwhile, the bad loan ratio also fell 0.04 percentage points in June from a year earlier, the FSC said.
That meant that while credit card spending was high, consumers were still able to pay their credit card bills on time.
Source: Focus Taiwan News Channel