Explanatory Notes – Notice on High NPLs

The Notice on Regulatory Measures to Reduce NPLs is aimed at ensuring that banks, specialised deposit-taking institutions (SDIs), and non-bank financial institutions (NBFIs) hereafter referred to as Regulated Financial Institutions (RFIs), have a framework for effectively addressing the rising stock of NPLs in the banking sector, set BOG’s supervisory expectations to managing NPLs and prevent the potential adverse effect of NPLs on RFIs’ lending to customers, profitability, operational efficiency, liquidity, and solvency as well as its threat to the stability of the financial system.