Percentage of Commercial Loans 90+ Days Past Due

Percentage of Commercial Loans 90+ Days Past Due

KPI Details

Percentage of Commercial Loans 90+ Days Past Due measures the dollar amount of outstanding commercial loans managed by the institution that are 90 or more 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. Higher percentages can indicate that the principal or interest on commercial loans that are still in performing status are at risk of not being collected. This is an important measure in analyzing a financial institution's loan portfolio and making decisions based on both the level of investment and lending risk, and the need to restructure loans currently outstanding.

KPI Definition

The dollar amount of outstanding commercial loans managed by the institution that are 90 or more 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

• Use historical data and portfolio analytics early in servicing process to identify borrowers who may be a repayment risk
• Create underwriting rules for loans to riskier industry sectors (e.g., real estate, restaurants, etc.)
• Well-defined processes for the Collections function to receive payment from delinquent accounts

KPI Calculation Instructions Percentage of Commercial Loans 90+ Days Past Due?

Two values are used to calculate this KPI: (1) the dollar amount of outstanding commercial loans managed by the institution that are 90 or more 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 90+ DPD are considered to be erforming 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 both greater than and less than 90 days outstanding.

KPI Formula :

(Dollar Amount of Outstanding Commercial Loans 90+ DPD & in Accrual Status / Total Dollar Amount of Outstanding Commercial Loans Managed) * 100