Taipei--Credit card spending in Taiwan in January was the highest for that month in recent years, the Financial Supervisory Commission (FSC) said, citing the Lunar New year shopping season as the main reason.
According to the FSC, credit card holders spent a total NT$201 billion (US$6.57 billion) in January, about NT$10 billion more than in January 2016.
The strong spending can be attributed not just to the six-day Lunar New Year holiday, but also to the fact that credit cards are being used more frequently in Taiwan as they become a more widely accepted form of payment, the FSC said.
However, credit card spending in January was NT$14.3 billion less than in the previous month, the FSC data showed.
Nonetheless, the January spending topped NT$200 billion, a monthly figure that was recorded only nine times in Taiwan's banking history, all of which have occurred since June 2014, the FSC said.
As of the end of January, there were 36 credit card issuers in Taiwan and about 27.84 million valid credit cards, an increase from 27.02 million as of the end of December, according to the FSC data.
It showed that in January, the 36 credit card issuers reported a net NT$440 million in bad loans from credit spending, compared with NT$360 million at the end of December.
The average bad loan ratio from credit card spending fell to 0.25 percent at the end of January from 0.27 percent at the end of last December, the FSC data showed.
Source: Focus Taiwan News Channel