Non-Performing Asset, Non-Performing Loan

Different jurisdictions classify and recognise banks’ non-performing assets in different ways for accounting and regulatory purposes. Generally speaking, classifications are based on a combination of quantitative and qualitative factors and cover both secured and unsecured exposures. A good rule of thumb is they are exposures that have been past-due for 90 days or more as well as performing exposures that have been designated as unlikely to pay or placed on nonaccrual status.