Non-Performing Loan (NPL) is a broad term used by financial institutions, denoting loans (or other similar credit) that are problematic in the sense that there is deviation from the contractual cash flows (repayments) associated with the loan or contract.
- NPL Glossary, a collection of NPL related terminology definitions
- NPL Life Cycle, description of the various stages that characterize non-performing loans
- Non-Performing Loan Valuation, overview of NPL valuation methodologies
- EBA NPL Template, standardized data templates as proposed by the European Banking Authority for the analysis of NPL portfolios
Issues and Challenges
- Due to the very widespread use of lending / credit in different legal jurisdictions, accounting and regulatory regimes there is considerable diversity of definitions. The BIS Guidelines is an attempt to harmonize the definitions of Non-Performing Exposure and Forbearance
- D403: Prudential treatment of problem assets - definitions of non-performing exposures and forbearance