Non-performing Loans Monitoring

Non-performing loans (NPLs) are loans where borrowers are unable to make payments for an extended period, typically 90 days or more. Monitoring NPLs is crucial for banks and financial institutions as it helps them assess financial health and risk. By tracking these loans, institutions can take proactive measures, such as restructuring terms or engaging with borrowers, to recover funds. Additionally, effective monitoring supports regulatory compliance and informs decision-making, ensuring that lenders can maintain stability and protect against future financial losses. It ultimately helps ensure the overall health of the banking system and the economy.