Author(s): Turgenev Reinda
Banking and finance is also a phrase for managing your money through investments in banks and other financial institutions. If your money is sitting inactive, it is critical that you invest it. A nonperforming loan (NPL) is a loan in which the borrower has gone into default and has failed to make any scheduled principle or interest payments for an extended period of time. If a borrower is 90 days past due on a commercial loan, it is deemed nonperforming in banking. NPLs, on the other hand, have no standard or definition. Banks sell non-performing loans at steep discounts, and collection agencies try to recoup as much of the money owing as possible. In exchange for a percentage of the amount recovered, the lender can hire a collection agency to enforce the recovery of a defaulted loan. Nonperforming loans (NPL) in the Gulf Cooperation Council (GCC) commercial banking industry are determined by factors at the bank and country levels. It investigates the influence of the rise of sectoral distribution financing and Islamic finance approaches on NPL. According to a dynamic panel based on data from numerous banks in the GCC region over several years, the NPL ratio worsens when economic development slows and interest rates and risk aversion rise.