# Non-performing loans and non-performing loans NPLs (also generally used in German)

- Canonical URL: https://www.gerhardmerk.de/non-performing-loans-and-non-performing-loans-npls-also-generally-used-in-german
- Post ID: 589526
- Modified: 2023-07-25T21:14:02+00:00
- Language: en

## Definition

Loans granted by companies to banks - and also increasingly to hedge funds - for the sole purpose of improving the balance sheet structure; i.e. not to make investments. This is also referred to as a retouching loan. The borrowed capital is primarily intended to avoid insolvencies - hedge funds or sovereign wealth funds are often the providers of capital here - and generally to ensure entrepreneurial flexibility. - Another term for a non-performing loan or, in a broad definition, any type of problem loan (situation which sees the borrower not paying on time and/or in full any interest and/or principal due as per the amortization schedule). - See default, loan, non-performing, reintermediation, loss absorption. - See BaFin Annual Report 2005, p. 124 (interpretation of the term), p. 125 (scope of business), BaFin Annual Report 2006, p. 131 f. (calculation of NPL volume; discharge through sale of problem loans; investments in NPLs), BaFin Annual Report 2007, p. 138 f. (NPLs 1998 to 2006; legal clarification of NPL sales), BaFin Annual Report 2008, p. 134 (volume of NPLs declined; chart), BaFin Annual Report 2009, pp. 153 f. (increase in NPLs; overview of NPLs since 1998), BaFin's 2010 Annual Report, p. 169 (redefinition of the term NPL; 2010 ratio of NPLs to 3.2 percent of loans extended to nonbanks), BaFin's 2013 Annual Report, p. 72 (reporting requirements). p. 98 (holdings) and the respective BaFin Annual Report, chapter "Supervision of Banks, Financial Service Providers and Payment Institutions." Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1