The study looked at how the 1997 Asian financial crisis affected non-performing loans in Taiwan. They analyzed data from 40 Taiwanese banks from 1996 to 1999. The findings show that as banks' loans and sizes increased, so did the rate of non-performing loans, but at a slower rate. Non-performing loans rose steadily from 1996 to 1999, likely due to the Asian financial crisis. Banks established after deregulation had lower non-performing loan rates than those established before.