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A non-performing loan (NPL) is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full. Non-performing loans represent a major challenge for the banking sector, as they reduce profitability. [ 1 ]
The infection ratio is used to work out the relationship between the non-performing part of the portfolio (i.e., loans not efficiently being recovered) and the total loan portfolio of a bank or other financial entity. [1] The ratio is used to evaluate infection in the loan portfolio between two different time periods, or amongst various ...
Loan quality and asset quality are two terms with basically the same meaning. Government bonds and T-bills are considered as good quality loans whereas junk bonds, corporate credits to low credit score firms etc. are bad quality loans. A bad quality loan has a higher probability of becoming a non-performing loan with no return.
Other non-conforming loan types. Hard money loans: A hard money loan is a non-conforming loan providing a borrower with short-term funding. Real estate investors often seek them out because they ...
1.1.3 Non-performing loans. 1.1.4 Profit. ... the ratio of operating expenses to total loan portfolio declined from 15.6% in 2003 to 12.7% in 2006, a trend likely to ...
SeaMoney expanded its loan book by over 70% year-over-year, maintaining a stable non-performing loan ratio. Li also highlighted Garena’s success, expecting Free Fire’s bookings to increase by ...
The challenge is the large number of non-performing loans in a wide variety of situations with regards to geographical location, type of industry, size and type of problem. If the bad bank does not quickly get control of the loans, a lot of value is lost and the capital requirements of the bad bank can change dramatically.
However, the bank's balance sheet remained weak, with a non-performing loan ratio of 35.7 percent at the end of 2003. [3] A new privatization strategy was developed, which involved issuing new shares instead of selling existing ones. [3] This approach ensured that all capital injected by the buyer would go directly into the bank. [3]