Papua New Guinea: Non-performing loans

The latest value from 2022 is 4.78 percent, a decline from 6.16 percent in 2021. In comparison, the world average is 5.49 percent, based on data from 124 countries. Historically, the average for Papua New Guinea from 2008 to 2022 is 3.07 percent. The minimum value, 1.78 percent, was reached in 2008 while the maximum of 6.16 percent was recorded in 2021. See the global rankings or world map for that indicator or use the country comparator to compare trends over time.

The percent non-performing loans in Papua New Guinea reflects the health of the banking system. A higher percent of such loans shows that banks have difficulty collecting interest and principal on their credits. That may lead to less profits for the banks in Papua New Guinea and, possibly, bank closures.

Definition: Bank nonperforming loans to total gross loans are the value of nonperforming loans divided by the total value of the loan portfolio (including nonperforming loans before the deduction of specific loan-loss provisions). The loan amount recorded as nonperforming should be the gross value of the loan as recorded on the balance sheet, not just the amount that is overdue.