A non-performing loan (NPL) is considered to be default or close to default. Once a loan is nonperforming, the odds the debtor will repay it in full are substantially lower. If the debtor resumes payments again on an NPL, it becomes a reperforming loan (RPL), even if the debtor has not caught up on all the missed payments.

According to Nairametrics
The Central Bank of Nigeria (CBN) stated that commercial banks’ non-performing loans (NPLs) levels in Nigeria fell below 5% to 4.94% at the end of December 2021, for the first time in about a decade.

This was disclosed in the personal statements of the members of the Monetary Policy Committee (MPC).

An NPL ratio is used to measure the level of the bank’s credit risk and the quality of outstanding loans. A high ratio means the bank bears a greater risk of loss if it fails to recover the owed amounts, while a low ratio means that the outstanding loans pose a low risk to the.......read more https://marketgists.com/non-performing-loans-npls

[sup][/sup]