Non-performing loans as a share of bank loans reached 1.93 % in 2014 in Japan, according to the National Central Bank. This is 17.6 % less than in the previous year.
Historically, non-performing loans as a share of bank loans in Japan reached an all time high of 9.54 % in 2001 and an all time low of 1.40 % in 2008. When compared to Japan's main peers, non-performing loans as a share of bank loans in China amounted to 1.25 %, 6.73 % in Russia, 0.488 % in South Korea and 1.85 % in USA in 2014.
Japan has been ranked 108th within the group of 136 countries we follow in terms of non-performing loans as a share of bank loans, 75 places behind the position seen 10 years ago.
A non-performing loan is a loan that is in default or close to being in default.