Non-performing loans ratio in the euro area 2015-2024

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 increased slightly in 2023 and 2024. In the wake of the financial crisis, non-performing loans 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. In late 2023, Poland was one of the countries with the highest NPL ratio in Europe.