9 KPMG International Cooperative

One key indication of the health of a bank's balance sheet is a low level of non-performing loans. High NPLs absorb capital, liquidity and talent: resources which would be much better focused on new business and growth.3It is encouraging that, for the first time since 2008, there has been a decline in the median NPL ratio in the Euro Area as mentioned in ECB's report on financial structures.
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