Non-performing loans ratio in the euro area 2015-2023

After falling several years in a row, the non-performing loans (NPL) ratio in the euro area and other EU countries under the single supervisory mechanism remained relatively stable in 2023. In the wake of the financial crisis, non-performing loans (NPLs) became a major concern policymakers, financial supervisors as well as market participants across the European Union. Non-performing loans are those that are in default, or are close to being in default. Many standard contract terms specify that loans become non-performing after being in default for 90 days, but this can vary. As of December 2021, Greece was one of the countries with the highest NPL ratio in Europe.