Problem Loan Ratio

Dictionary Says

Definition of 'Problem Loan Ratio'

A ratio in the banking industry that denotes the percentage of problem loans to sound ones. The problem loan ratio is ultimately a measure of the health of the banking and lending industries and the economy. A higher ratio means a greater number of problem loans and vice-versa.
Investopedia Says

Investopedia explains 'Problem Loan Ratio'

The problem loan ratio can be broken down by the level of delinquency of loans, such as those less than 90 days past due versus those more severely in arrears. This ratio increased across the board during the 2007-2009 recession and subprime fallout. This ratio can apply to specific banks, bank branches or the industry as a whole.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Loan

    The act of ...
  2. Credit

    1. A contractual ...
  3. Credit Score

    A statistically ...
  4. Credit Card

    A card issued by ...
  5. Credit History

    A record of a ...
  6. Problem Loan

    In the banking ...
  7. Problem Loan

    In the banking ...
  8. Lehman Brothers

    A firm that was ...
  9. Insolvency

    When an ...
  10. Depression

    A severe and ...

Articles Of Interest

  1. Borrowing From Your Retirement Plan

    Left with no alternative but to take money out from your retirement savings? Here are some guidelines.
  2. The Importance Of Your Credit Rating

    A great starting point for learning what a credit score is, how it is calculated and why it is so important.
  3. Different Needs, Different Loans

    Find out what options are available when it comes to borrowing money.
  4. Promissory Notes: Not Your Average IOU

    These may be a handy way to borrow money, but this convenience does not come without risk.
  5. Payday Loans Don't Pay

    Hold too tightly to this rescue line and you'll soon be drowning in debt.
  6. Check Your Credit Report

    Make sure there are no errors holding you back from obtaining a loan.
  7. Avoiding Foreclosure Scams

    If you want to save your home, avoid bogus offers and take matters into your own hands.
  8. Saving Your Home From Foreclosure

    Learn the tactics you can use to prevent your home from being repossessed.
  9. Reverse Mortgage Pitfalls

    Before tapping your home equity, find out what can go wrong.
  10. A History Of Wall Street Profitability

    Learn about the performance of the Dow Jones Industrial Averages (DJIA) through the decades.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center