nonperforming

USAGE SUMMARY

'nonperforming' is a perfectly acceptable word in written English.
It is typically used to describe something or someone that does not meet the standards or expectations, usually related to work or performance. For example, "The board decided to terminate the nonperforming employee."

✓ Grammatically correct

Formal & Business

News & Media

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

The Sociedad de Gestión de Activos Procedentes de la Reestructuración Bancaria (SAREB) became operational in November 2012 with the stated mission of managing and disposing of up to €90 billion (about $120 billion) of nonperforming real-estate loans over a period of 15 years.

Encyclopedia Britannica

Her sexy, roiling presence onstage is one side of her, her wry social portraits on "Portlandia" represent another side, and neither has much in common with her modest, cerebral, nonperforming self.

The New Yorker

Even the least cynical analysts acknowledged that lower ratios partially reflected the dilution of bad loans in a vast sea of new lending, some of which would go bad but was still too recent to register as nonperforming.

The New York Times

Fitch even hinted at the possibility of another wave of nonperforming loans tied to the property market.

The New York Times

Lending by state-run banks was one of China's most aggressive forms of stimulus last year, but analysts constantly warned that banks could face the risk from overbuilding and nonperforming loans.

The New York Times

"The bank's capacity to generate profit enables us to set aside hefty real estate provisions in Spain in 2012 and significantly increase nonperforming loan coverage," Santander's chairman, Emilio Botín, said in a statement.

The New York Times

Another growth driver — local government investment in infrastructure projects — has also come under scrutiny from regulators because of worries that overly aggressive spending on new roads, bridges, tunnels, subways and showpiece projects could lead to a wave of nonperforming loans to municipalities.

The New York Times

Nonperforming loans in Spain rose to 5.1 percent of the bank's total portfolio, a slight increase from the period in 2010.

The New York Times

In Italy, ravaged by a stagnating economy, banks are experiencing a steep increase in nonperforming loans — one of the highest rates in the euro zone — that worries regulators and has made an investment fad of betting against Italian bank bonds.

The New York Times

In addition to reducing the expense for its bad-loan reserve by $600 million, Wells Fargo said its bucket of nonperforming loans in the fourth quarter declined roughly 20 percent from the period a year earlier.

The New York Times

Indeed, most economic experts on China predict that the big banks will be saddled with another wave of nonperforming assets as the wild lending spree of the last two years produces a new crop of sour loans.

The New York Times

Expert writing Tips

Best practice

When discussing financial instruments like loans, use "nonperforming" to clearly indicate that payments are not being made as agreed.

Common error

Be careful not to confuse "nonperforming" with "non-performance". "Nonperforming" typically refers to assets like loans, while "non-performance" describes a failure to fulfill a contractual obligation.

Linguistic Context

The term "nonperforming" primarily functions as an adjective, typically modifying nouns like "loan", "asset", or "investment". It serves to describe the state of these nouns as not meeting expected performance standards, particularly in financial contexts, as demonstrated by Ludwig's examples.

Expression frequency: Very common

Frequent in

News & Media

35%

Formal & Business

33%

Encyclopedias

17%

Less common in

Science

5%

Reference

5%

Social Media

0%

Ludwig's WRAP-UP

The term "nonperforming" is a grammatically sound adjective, most often used in financial and business contexts to describe assets, particularly loans, that are not meeting expected performance standards. According to Ludwig, its function is to clearly indicate that something is not generating expected returns or meeting its obligations. It's considered a professional term suitable for formal discussions, as evidenced by its frequent appearance in News & Media and Formal & Business sources. Be mindful not to confuse it with "non-performance", which relates to fulfilling contractual obligations. Considering related terms like "underperforming" and "delinquent" can offer nuance, but "nonperforming" specifically carries a technical financial connotation.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

underperforming

Focuses on a failure to meet expectations or standards in terms of performance.

delinquent

Specifically refers to debts or loans that are overdue.

defaulted

Implies a failure to fulfill an obligation, especially a financial one.

sour

Informal term describing something that has gone bad or turned negative.

troubled

Indicates something experiencing difficulties or problems.

impaired

Suggests a reduction in value or effectiveness.

non-viable

Describes something that is not capable of succeeding or surviving.

bad

A general term for something negative or undesirable in value or function.

unproductive

Highlights the lack of output or results.

failing

Suggests a decline in performance or condition, moving towards failure.

FAQs

How is "nonperforming" typically used in financial contexts?

In finance, "nonperforming" is often used to describe loans or assets that are not generating income or for which the borrower is not making payments. Examples include "nonperforming loans" or "nonperforming assets".

What's a more informal term for "nonperforming" loans?

A more informal term for "nonperforming loans" is "bad loans", although this term is less precise.

How do "nonperforming" assets affect a bank's financial health?

Nonperforming assets reduce a bank's profitability and can lead to financial instability if they constitute a significant portion of the bank's portfolio. Banks often set aside reserves to cover potential losses from these assets.

What are some strategies for managing "nonperforming" loans?

Strategies for managing "nonperforming loans" include restructuring the loan, selling the asset, or pursuing legal action to recover the debt. Banks may also transfer these loans to a "bad bank" to isolate them from their healthy assets.