| Code | FB.AST.NPER.ZS |
| Indicator Name | Bank nonperforming loans to total gross loans (%) |
| Short definition | The indicator measures the proportion of a deposit taker’s loan portfolio that is impaired or at risk of default. It is calculated as the ratio of non-performing loans (NPLs) to total gross loans, where NPLs are defined as loans that are past due by 90 days or more or are otherwise considered unlikely to be repaid in full without the realization of collateral. Both non-performing loans and total gross loans should be reported at their gross book value, without deducting for loan-loss provisions or collateral. This indicator provides a key measure of asset quality and potential credit risk in the banking system. |
| Long definition | The indicator measures the proportion of a deposit taker’s loan portfolio that is impaired or at risk of default. It is calculated as the ratio of non-performing loans (NPLs) to total gross loans, where NPLs are defined as loans that are past due by 90 days or more or are otherwise considered unlikely to be repaid in full without the realization of collateral. Both non-performing loans and total gross loans should be reported at their gross book value, without deducting for loan-loss provisions or collateral. This indicator provides a key measure of asset quality and potential credit risk in the banking system. |
| Source | Financial Soundness Indicators, International Monetary Fund (IMF), uri: https://data.imf.org/en/datasets/IMF:EXTERNAL_DATASET_CARDS/IMF.STA:LFSI |
| Topic | Financial Sector: Assets |
| Dataset | WDI |
| Unit of measure | Percentage |
| Periodicity | Annual |
| Reference period | 2000-2022 |
| Aggregation method | Ratio of non-performing/total loan portfolio |
| Statistical concept and methodology | Methodology: The ratio is calculated by dividing the value of non-performing loans (NPLs) by the total value of gross loans, expressed as a percentage. Both NPLs and total gross loans should be reported at their gross book value, meaning before any deductions for provisions, write-offs, or collateral. Gross loans include all outstanding loans on the balance sheet, including those classified as non-performing. The classification of NPLs should be based on either quantitative criteria (e.g., days past due) or qualitative assessments (e.g., evidence of financial difficulties), following supervisory standards aligned with Basel guidance. Data should be compiled using a consistent consolidation basis, typically the cross-border, cross-sector, domestically incorporated consolidation approach (CBCSDI), to ensure comparability across reporting entities and jurisdictions.
Statistical concept(s): The Non-performing Loans (NPLs) to Total Gross Loans ratio is a core indicator of asset quality within the banking sector. It measures the proportion of a deposit taker’s loan portfolio that is impaired or at significant risk of default. A loan is classified as non-performing when payments of principal or interest are overdue by 90 days or more, or when it is assessed that full repayment is unlikely without the realization of collateral, even if the loan is not yet past due. Data are submitted by national authorities to the IMF following the Financial Soundness Indicators (FSI) Compilation Guide. |
| Development relevance | This indicator serves as a key measure of asset quality within the banking sector. A higher ratio indicates a greater share of impaired loans, which can signal deteriorating credit risk and financial health of lending institutions. Conversely, a lower ratio reflects better asset quality and lower credit risk. Importantly, total gross loans include the full book value of loans before provisioning and do not net out collateral or guarantees. This indicator helps assess potential vulnerabilities in a financial system, especially when tracked over time or compared across institutions and jurisdictions. |
| 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 on the IMF FSI website (data.imf.org) to conduct more meaningful cross-country comparisons or to assess the evolution of the indicator for any of the countries. |
| License URL | https://datacatalog.worldbank.org/public-licenses#cc-by |
| License Type | CC BY-4.0 |
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