bad loans

Uncollectible bank advances

Bad loans are loans unlikely to be repaid—the borrower has defaulted or shows signs of doing so.

Banks track bad loans (also called nonperforming loans) as a measure of portfolio health.

A surge in bad loans can signal economic trouble or reckless lending practices: The bank's balance sheet was weighed down by bad loans from the housing boom.

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under water · toxic · write-off · bankruptcy · collateral · mortgage · repossession · credit · credit risk · debt · arrears · collection · nonperforming · restructuring · risk · lender · borrower · interest

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credit quality

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Borrowing backed by assets

financial performance

bad loansliquid assets

Easily convertible wealth

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