Banks lend out money with the hope that whoever is borrowing it is going to pay it back. However, that doesn’t always happen and borrowers are sometime unable to pay the money back.
What that happens, you get the formation of non-performing loans (or NPL or short), which is exactly what it sounds like.
NPLs are formed when principal and interest payments are overdue by a certain number of days – and are considered bad debt because the likelihood of getting paid back on that debt decreases.
when I clicked on the :”read the full article” it goes nowhere, does not bring me to read more.
Hi Chan,
Thanks for pointing out. There was a problem during my site update and I have fix the link.