Percentage of Commercial Loans 30-89 Days Past Due

Percentage of Commercial Loans 30-89 Days Past Due

KPI Details

Percentage of Commercial Loans 30-89 Days Past Due is the dollar amount of outstanding commercial loans managed by the institution that are 30 to 89 days past due (DPD) and are still considered to be in accrual status (accumulating interest) in relation to the total dollar amount of outstanding commercial loans managed at the same point in time. A large percentage of commercial loans considered to be 30-89 DPD can indicate that these commercial loans are at risk of not being collected, although interest is still accumulating on the principal dollar value. This can also be an indicator of low-performing macroeconomic conditions.

KPI Definition

The dollar amount of outstanding commercial loans managed by the institution that are 30 to 89 days past due (DPD) and are still considered to be in accrual status (accumulating interest) divided by the total dollar amount of outstanding commercial loans managed at the same point in time, as a percentage.

KPI Best Practices

• Review loan underwriting rules on a regular basis to prevent lending to risky borrowers
• Perform stress tests on portfolios and debtors to gauge the impact of adverse events and anticipate instances of default
• Develop triage process for underwriting by assigning more complex applications to more experienced underwriters

KPI Calculation Instructions Percentage of Commercial Loans 30-89 Days Past Due?

Two values are used to calculate this KPI: (1) the dollar amount of outstanding commercial loans that are 30 to 89 days past due (DPD) and are still considered to be in accrual status (accumulating interest), and (2) the total dollar amount of outstanding commercial loans managed at the same point in time. Commercial loans 30 to 89 DPD are considered to be performing loans, as these loans are still accumulating interest. Measure the dollar amounts of all outstanding commercial loans managed, including performing and non-performing loans and those greater than 89 days outstanding.

KPI Formula :

(Dollar Amount of Outstanding Commercial Loans 30 to 89 DPD & in Accrual Status / Total Dollar Amount of Outstanding Commercial Loans Managed) * 100