The NBRB revised in 2018 its regulation on asset classification and provisioning (the Regulation). One of the main changes was the introduction of a new definition for NPLs based on the current framework of risk groups (RGs). This definition substitutes the previous term 'problem assets.' One of...

This Technical Note examines the current state of nonperforming loans (NPLs) in Bulgaria and makes recommendations for a strategy to substantially reduce NPLs. The Bulgarian National Bank should adopt a comprehensive strategy in the near term to achieve a substantive reduction in NPL levels over...

This Technical Note discusses the findings and recommendations in the Financial Sector Assessment Program for Spain in the areas of impaired assets and nonperforming loans (NPLs). The size of the problem assets varies significantly across banks and is concentrated in those exposed to residential...

Hong Kong SAR (HKSAR) is a small and open economy, and a major international financial center with extensive linkages to Mainland China. Over the past two years, Hong Kong SAR's economy and financial sector were adversely impacted by domestic social unrest, US-China tensions, and the global...

Peru entered the pandemic with a sustained track record of implementing very strong policies amid very strong economic fundamentals and institutional policy frameworks, but was hit hard by the pandemic, which took a heavy toll in terms of human lives and economic output. Tensions between...