New answers tagged

1

debt/loan lifecycle could be described as: 1) origination 2) debt is outstanding; borrower makes regular interest payments and prepays (scheduled or unscheduled) if any. debt/loan is considered performing 2.1) if borrower misses interest payment, debt/loan becomes delinquent, grace period starts 2.2) grace period expires, still no payment - debt becomes ...


2

You can think of it as a 3 state Markov Chain: when a loan is made it is considered GOOD. As long as it is good, the bank automatically accrues earnings on this loan. When the bank notices that a payment from the customer has been missed for a certain time (usually 90 days) the loan becomes NPL or non performing loan; the bank stops recognizing income on ...



Top 50 recent answers are included