NPL
Business & Finance abbreviation · Banking
| Stands for | Non-performing loan |
|---|---|
| Categories | Business & Finance |
NPL stands for Non-performing loan, a banking abbreviation.
Loan on which the borrower has stopped making scheduled payments, usually for 90 days or more, or that is unlikely to be repaid in full. Banks report NPL ratios as a measure of asset quality.
Example: The bank's NPL ratio rose to 3.1 percent as small businesses struggled with higher rates.
Usage notes
European banks were burdened with high NPL levels after the eurozone crisis, with ratios above 40 percent of loans at the peak in Greece and Cyprus. Banks deal with NPLs through restructuring, write-offs or sales to specialist investors. Definitions vary across jurisdictions, which complicates comparisons.
Related abbreviations
More banking abbreviations
- MT103 – SWIFT MT103 message (single customer credit transfer)
- NACHA – Nacha (formerly National Automated Clearing House Association)
- NEFT – National Electronic Funds Transfer
- NII – Net interest income
- NIM – Net interest margin
- NPA – Non-performing asset
- NSF – Non-sufficient funds
- NSFR – Net stable funding ratio
- OD – Overdraft
- ODP – Overdraft protection
- PAN – Primary account number
- PEP – Politically exposed person