Bank nonperforming loans to total gross loans (%)
Definition: Bank nonperforming loans to total gross loans are the value of nonperforming loans divided by the total value of the loan portfolio (including nonperforming loans before the deduction of specific loan-loss provisions). The loan amount recorded as nonperforming should be the gross value of the loan as recorded on the balance sheet, not just the amount that is overdue.
Description: The map below shows how Bank nonperforming loans to total gross loans (%) varies by country. The shade of the country corresponds to the magnitude of the indicator. The darker the shade, the higher the value. The country with the highest value in the world is San Marino, with a value of 63.51. The country with the lowest value in the world is Monaco, with a value of 0.24.
Source: International Monetary Fund, Global Financial Stability Report.
See also: Country ranking, Time series comparison
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Development Relevance: The size and mobility of international capital flows make it increasingly important to monitor the strength of financial systems. Robust financial systems can increase economic activity and welfare, but instability can disrupt financial activity and impose widespread costs on the economy. The ratio of bank nonperforming loans to total gross loans measures bank health and efficiency by identifying problems with asset quality in the loan portfolio. A high ratio may signal deterioration of the credit portfolio.
Limitations and Exceptions: Reporting countries compile the data using different methodologies, which may also vary for different points in time for the same country. Users are advised to consult the accompanying metadata to conduct more meaningful cross-country comparisons or to assess the evolution of the indicator for any of the countries at http://fsi.imf.org/.
Statistical Concept and Methodology: The ratio of bank nonperforming loans to total gross loans is the value of nonperforming loans (gross value of the loan as recorded on the balance sheet) divided by the total value of the loan portfolio (including nonperforming loans before the deduction of loan loss provisions). It measures bank health and efficiency by identifying problems with asset quality in the loan portfolio. International guidelines recommend that loans be classified as nonperforming when payments of principal and interest are 90 days or more past due or when future payments are not expected to be received in full. Data are submitted by national authorities to the IMF following the Financial Soundness Indicators (FSI) Compilation Guide. For country specific metadata, including reporting period, please refer to the GFSR FSI Tables and the Data and Metadata Tables available through FSIs website: http://fsi.imf.org/.