Bank nonperforming loans to total gross loans (%)

This financial metric represents the proportion of nonperforming loans within a bank's total gross loan portfolio, expressed as a percentage. It is calculated by dividing the total value of nonperforming loans—those that are in default or at risk of default—by the overall value of the loan portfolio, including all loans without applying deductions for specific loan-loss provisions. This measure serves as a crucial indicator of asset quality, highlighting the potential risk exposure associated with outstanding loans. A rising percentage may signal underlying issues in credit risk management and could foreshadow future profitability challenges, while a declining figure may reflect effective collection strategies and improved credit conditions within the institution. Understanding this ratio helps stakeholders assess the bank's financial health and resilience in managing loan defaults. Source: