Middle income countries more likely to report rising NPL levels

Most high income respondents say NPL levels have fallen in last five years

The weighted average of non-performing loans (NPLs) in a selection of central banks suggests that the NPL ratio of the global banking sector moderated within the last five years. The responses of 31 banks to this question in the Financial Stability Benchmarks 2022 underscored this finding.

Twenty-five out of the 31 respondents, or 81%, said NPLs as proportion of total loans in their country’s banking sector has not risen in the last five years. Just six banks said the trend has grown.

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