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What Are Non-Performing Loans?

By Catherine Brock – Updated Dec 17, 2024 at 2:29PM

Key Points

  • NPLs indicate default status, impacting lenders' financial health through potential charge-offs.
  • Lenders mitigate NPL losses by seizing collateral, restructuring debt, or selling loans.
  • NPL ratio, compared against economic conditions, assesses lender's loan portfolio health.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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