non-performing loans

USAGE SUMMARY

The phrase "non-performing loans" is correct and usable in written English. You can use it in financial contexts to refer to loans that are not being repaid as agreed. For example, "The bank reported an increase in non-performing loans this quarter." Alternative expressions include "defaulted loans" and "delinquent loans."

✓ Grammatically correct

News & Media

Academia

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Non-performing loans are rising.

The Economist

The incidence of non-performing loans is rising.

The Economist

For starters, the reduction in non-performing loans is deceptive.

The Economist

Non-performing loans are high and rising fast.

The Economist

Non-performing loans rise, putting pressure on banks.

The Economist

But behind the scenes, non-performing loans were ballooning.

The Economist

Writing off banks' non-performing loans might seem more sensible.

The Economist

Banks found themselves loaded down with non-performing loans.

The Economist

What is clear, though, is that the non-performing loans reflect a non-performing economy.

The Guardian - Business

All told, Italy's banks are now estimated to hold €360bn of non-performing loans.

The Guardian

Concerns about the non-performing loans held by Europe's shaky banks will be reignited.

The Guardian - Business

Expert writing Tips

Best practice

When discussing "non-performing loans", be specific about the industry or region to provide context. For example, "non-performing loans in the real estate sector".

Common error

Avoid using "non-performing loans" interchangeably with "loan loss provisions". NPLs are the actual loans in default, while loan loss provisions are reserves set aside to cover potential losses from these loans.

Linguistic Context

The phrase "non-performing loans" functions as a noun phrase, typically acting as the subject or object in a sentence. Ludwig examples show its usage in describing economic conditions, bank performance, and financial risk.

Expression frequency: Very common

Frequent in

News & Media

51%

Formal & Business

27%

Academia

18%

Less common in

Science

4%

Ludwig's WRAP-UP

The phrase "non-performing loans" is a common and grammatically correct term in finance, referring to loans that are not being repaid as agreed. Ludwig confirms its consistent use across various contexts, primarily in news, business, and academic settings. It's crucial to distinguish NPLs from related concepts like loan loss provisions. Alternatives include "distressed loans" and "bad debts", though each carries slightly different nuances. According to Ludwig, the phrase's register is professional, reflecting its technical nature.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

distressed loans

Focuses on the financial distress aspect of the loans.

bad debts

A more general term, emphasizing the unrecoverable nature of the debt.

defaulted loans

Highlights the failure to meet payment obligations.

impaired loans

Emphasizes the reduced value or recoverability of the loans.

non-current loans

Focuses on the loans not being up-to-date with payments.

at-risk loans

Highlights the potential for loans to become non-performing.

problem loans

A broad term for loans facing difficulties.

doubtful debts

Indicates uncertainty about the loan's repayment.

uncollectible loans

Emphasizes the difficulty or impossibility of recovering the loan amount.

loans in arrears

Specifies that payments are overdue.

FAQs

How are "non-performing loans" typically handled by banks?

Banks often try to restructure "non-performing loans", sell them to debt collectors, or write them off as losses.

What economic factors can lead to an increase in "non-performing loans"?

Economic downturns, high unemployment rates, and rising interest rates can all contribute to a rise in "non-performing loans".

What's the difference between "non-performing loans" and "subprime mortgages"?

"Non-performing loans" is a general term for loans in default, while "subprime mortgages" are a specific type of loan issued to borrowers with low credit ratings, which have a higher risk of becoming non-performing.

Are "non-performing loans" always a sign of a failing bank?

While a high level of "non-performing loans" can indicate financial trouble, it doesn't necessarily mean a bank is failing. Banks can manage NPLs through various strategies, and the overall health of the bank depends on many factors.