Nonperforming loans accounted for 2.7% of Equity's total portfolio, according to the company's most recent quarterly statement.
And the banks, acting as intermediaries between savers and investors, were left with heaps of nonperforming loans.
Many of the new loans will end up as nonperforming assets on the books of the state banks.
Example: A third of the bank's loans to Greece's shipping industry were nonperforming.
In addition, the earnings surprise news masks a jump in Comerica's nonperforming loans.
It said in the prospectus that part of the proceeds would be used to buy subperforming and nonperforming residential-mortgage loans.
The ECB urged banks to make "adequate provisions" against nonperforming assets "as well as any other foreseeable expense, " such as litigation costs.
Illiquid and nonperforming debt held by financial institutions from these countries can, with the Brady bonds, be converted into sustainable, performing debt.
This then allows the financial institutions to get the nonperforming asset off their balance sheets and replace them with new assets.
The bank's nonperforming assets are rising, but at a recent 0.38% of total assets they are much lower than the 0.74% year-end industry average.
The company nearly collapsed by the 1990s due to management shortcomings, a downturn in the nation's banking sector and nonperforming loans topping 54% of its portfolio.
And the Shanghai branch of Huaxia Bank has been exposed by a government audit in a scheme to underreport its nonperforming loans, according to Chinese news reports.
Nonperforming assets fell 24% to the lowest level since 2008.
For one thing, they are avoiding making long-term loans, a sign of funding difficulties, probably caused by the nonperforming assets they have been carrying on their balance sheets.
Additionally, Wells continues to slough nonperforming loans from its assets.
For instance, Spain's La Caixa savings bank may use Broadcaster to reach all 4, 000 branches with alarms about nonperforming loans or with prospect lists for some new marketing push.
More significant may have been policies aimed at keeping corporate borrowing rates low to slow the growth rate of nonperforming loans, and deposit rates even lower to ensure bank profitability.
This risk is mitigated by the current moderate level of nonperforming loans (1.1% of total lending), larger provisions for bad loans, and more stringent bank capital-adequacy requirements in recent years.
Investors fear that the same lax lending standards that caused banks to write down nonperforming home loans, will cause a second wave of weakness, as defaults increase on commercial mortgages.
It would be in the interest of public policy for the regulators to separate the nonperforming assets and problematic parts of the company from those that should and can continue.
Although the surge in bank lending may temporarily cushion the impact of the global contraction on China's economy and employment, it will almost certainly lead to another surge in nonperforming loans.
The whole situation boils down to this: because a nonperforming bond is worth less than 100% of its face value, the Brady bond replaces the defunct debt as a new asset.
These policies will limit future domestic consumption growth in the same way that they have in the past, and the greater the amount of nonperforming loans generated the tighter the constraints on consumption growth.
Mirae added their name to the soft landing crowd on Tuesday, saying that issues raised recently about nonperforming loans (NPLs) have raised concerns over the possibility of a sharp slowdown in growth and negative real interest rates.
But some are destined for foreclosure and will need to be foreclosed in the coming years, not to mention that some going into the loan modification bucket or nonperforming loan sale bucket will end up as foreclosures eventually.
Just about everyone agrees with Ni Jun of Shenyin Wanguo Securities in Shanghai that nonperforming loans will rock bank earnings sometime during the middle of next year, even if the economy hits bottom this quarter, as many predict.
But in the late 1990s, some of the banks wanted to capitalize on hopes at that time for a reunification between North Korea and South Korea, so they parceled some of the nonperforming loans into two tranches of 293 million Deutsche marks and 217 million Swiss francs.
Khalid's tenure heading NCB led to Saudi government intervention in the affairs of the bank after a catastrophic rise in nonperforming loans, including huge sums to Khalid: The Saudi Public Ownership Fund purchased a 50% stake in the bank in 1999, reducing the family's share to 34%.
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