The problems plaguing Taiwan's financial sector are particularly widespread at the local level, among agricultural associations and credit cooperatives. Difficulties multiplied during the 1980s with the widespread opening of new banks, leaving Taiwan with a non-performing loan ratio of 8 %, reaching 10 % among local-level institutions.
金融失序由來已久，地方有農會、信用合作社問題，八○年代新銀行大量開放後更是迅速惡化，造成台灣的銀行有高達百分之八的逾放比率，地方金融機構更是高達百分之十。長期以來，國民黨政府的邏輯是「銀行是不能讓它倒的，否則會有骨牌效應，民間會承受不起。」