NPA Full Form | What Does NPA Stand For?

NPA: Non Performing Assets

NPA Full Form

NPA Full Form

NPA full form stands for Non Performing Assets. A Non Performing Assets is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full.

Inefficient lending represents a major challenge for the banking sector, as it reduces banks’ profits, and is often presented as a deterrent to lending to businesses and consumers as the result of slowing economic growth.

Brief Explanation

In the European Union, the management of the NPL, which emerged from the 2008 global financial crisis, has become a politically sensitive issue, urging the European Commission’s decision to deal with the NPL in 2017. An action plan should be presented.

The Action Plan supports the development of a secondary market for NPLs and the establishment of asset management companies. In December 2020, the Action Plan was revised in the wake of the Cove 19 epidemic.

Criteria

  • Interest and principal payments last for 90 days or more.
  • Under the agreement, at least 90 days of interest payments have been substantially reimbursed or delayed.
  • Payments are less than 90 days old, but there are other good reasons to doubt that the payment will be made in full.

What Is The Full Form Of NPA?

NPA full form stands for Non Performing Assets. A Non Performing Assets is a bank loan that is subject to late repayment or is unlikely to be repaid by the borrower in full. Under the agreement, at least 90 days of interest payments have been substantially reimbursed or delayed.

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