Non Performing Loan

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Non Performing Loan

A loan in or near default. According to the International Monetary Fund, a non-performing loan is any loan in which: interest and principal payments are more than 90 days overdue; or more than 90 days' worth of interest has been refinanced, capitalized, or delayed by agreement; or payments are less than 90 days overdue but are no longer anticipated. Another definition of a non-performing loan is one in which the maturity date has passed but at least part of the loan is still outstanding. The specific definition is dependent upon the loan's particular terms.
References in periodicals archive ?
The bank said it maintained its conservative approach to non-performing asset recognition and provisioning in line with both best practice and UAE Central Bank guidelines, ensuring a healthy pre-collateral non-performing asset coverage ratio of 70.
These changes pertain to non-performing asset levels since June 30, 2007.
Larry D Richman, president and CEO of the company, said, 'While there is still credit uncertainty, we are encouraged by the slowing pace of our non-performing asset growth and continue to actively manage through the challenges of the cycle.
As a result, the bank's non-performing asset ratio, a key measure of asset quality, was reduced from a high of 7.
The Airport Marriott Hotel represented the bank's largest single non-performing asset and total non-performing assets will drop by 8 percent as a result of the sale.
Despite some volatility through an economic cycle, Duff & Phelps expects the non-performing asset ratio will be maintained at lower levels peak to peak and trough to trough going forward.
Non-performing asset levels are partly influenced by DFL's conservative classification policy.
Banks need to lower their non-performing asset ratios, obtain capital relief, avoid potential catastrophic losses and focus on business development.
According to him, a major chunk of the non-performing assets in the industry can be tracked to rent seeking -behaviour.
At June 30, 2014, non-performing assets totaled $1.
Global Banking News-March 20, 2014--Islamic banks' non-performing assets increase in Bangladesh
Generally, the motivation is to improve the balance sheet and increase earnings by reducing non-performing assets and loan losses.