Taiwan acts on banking reform

Taiwan's finance ministry is encouraging banks to clean up their balance sheets by offering streamlined product approval for those with non-performing loan (NPL) ratios of below 5 per cent.

The move reflects efforts to push forward financial reform despite the recent collapse of the government's policy on failing local lenders and this week's failure to persuade legislators to make more than T$1,000bn (US$29bn) in public funds available to bail out problem banks.

Officials are also hoping that