Non-performing loan ratio refers to the proportion of non-performing loans of financial institutions to the total loan balance. Non-performing loans are divided into five categories according to the risk basis: normal, concerned, secondary, suspicious and loss, of which the latter three categories are collectively referred to as non-performing loans.
The non-performing loan ratio of financial institutions is one of the important indicators to evaluate the security of credit assets of financial institutions. The higher the non-performing loan ratio, the greater the proportion of loans that may not be recovered in the total loans; The low rate of non-performing loans means that the proportion of loans that financial institutions can't recover is smaller. The calculation formula of NPL ratio is as follows: NPL ratio = (subprime loan+doubtful loan+loss loan)/loan × 100%= loan provision ratio/provision coverage ratio × 100%.
The five-level loan classification standard is implemented in accordance with the Guiding Principles for Loan Risk Classification (Yinfa [20065438+0] No.465438+06), the Notice on Promoting and Perfecting Loan Risk Classification (Yin Jian Fa [2003] No.22) and relevant laws and regulations.
A normal loan is defined as the borrower's ability to perform the contract, and there is no sufficient reason to suspect that the loan principal and interest cannot be repaid in full and on time. The definition of concern loan is that although the borrower has the ability to repay the principal and interest of the loan at present, there are some factors that may adversely affect the repayment. Subprime loan is defined as the borrower's repayment ability has obvious problems, and it is impossible to repay the loan principal and interest in full by relying entirely on its normal operating income. Even if the guarantee is implemented, it may cause certain losses. The definition of suspicious loan is that the borrower can't repay the loan principal and interest in full, even if the guarantee is implemented, it will definitely cause great losses. Loss loan refers to a loan whose principal and interest cannot be recovered or only a small part can be recovered after all possible measures or all necessary legal procedures are taken. After classifying all kinds of loans, the following three types of loans are classified as non-performing loans. Various loans refer to the assets formed by banking financial institutions issuing monetary funds to borrowers. It mainly includes loans, trade financing, bill financing, financial leasing, buying resale assets from non-financial institutions, overdrafts and various advances.