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 fourth quarter 2000 results contained an after-tax charge of $744,000 related to the write down of a non performing asset.
These included Tier 1 capital to Risk Weighted Assets with 40 percent weight, Non performing assets to total assets with 20 percent weight, loan Loss reserve to Non performing assets with 205 weight, Deposits to funding with 155 weight and Efficiency (Cost to Revenue) with 5 percent weight.
Overall financial performance was based on six weighted financial performance criteria comprised of core return on average assets, core return on average equity, three-year annual core cash earnings per share growth, efficiency ratio, non performing assets to total assets and net charge offs to average loans.
This is a major step towards delivering our strategy to divest of non core or non performing assets and focus on value added businesses that offer more stable future earnings.
Non performing assets at March 31, 1997 was $14,000 remaining unchanged from the previous quarter as compared to zero for the quarter ended March 31, 1996.
Accordingly, the bank experiences very high asset quality as evidenced by its ratio of non performing assets to total assets ratio at Dec.