PRACTICAL STATUS OF PROBLEM LOANS IN THE BANKING SYSTEM OF OUR REPUBLIC AND WAYS TO REDUCE THEM
Abstract
Problematic loans, or non-performing loans (NPLs), pose a significant challenge to the banking systems worldwide, including in many developing and emerging markets. In the context of our Republic, the banking sector has faced increasing issues with the quality of loans, particularly in light of economic disruptions, political instability, and changes in global financial conditions. Problematic loans not only undermine the financial health of individual banks but also impact the overall stability of the financial system and limit the ability of banks to lend to businesses and consumers. This article aims to explore the practical status of problem loans in the banking system of our Republic, examining the causes, current trends, and the impact of NPLs on financial institutions.
Keywords
Problematic loans, non-performing loans (NPLs), banking system, asset management companies (AMCs), loan restructuring, financial stability, loan management practices, regulatory frameworks, banking sector reforms, financial health.
References
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