Rising Numbers of Non-Performing Loans Need to be Worried About

A report from a magazine shows an indication of an increase in non-performing loans (NPL) in national banks. According to the latest report of the Financial Services Authority (OJK), NPLs increased from 2.7 percent in 2015 to 3.1 percent in 2016.

Technically, the NPL classification is differentiated according to the length of the delay in the installment until the loan is completely not paid. The NPL figure above is gross, or the ratio of the problem loans to the total value of bank loans.