According to Baidu Encyclopedia, on February 3, 2023, the data of China Banking Regulatory Commission showed that the NPL ratio of banking financial institutions at the end of 2022 was 1.7 1%. Definition: 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)/various loans × 100%= loan provision ratio/provision coverage ratio × 100%.