NPL Data
NPLs in Asia: 2024 Data Analysis
This section draws on data from the report NPL Watch Asia: Monitoring Nonperforming Loans in Asia 2025.
In 2024, the total volume of NPLs across Asia reached approximately $700.19 billion, down marginally from $713.34 billion in 2023 (about 1.8% points) to a broadly stable credit environment across the region. However, the aggregate figure masks notable variation across subregions. East Asia remained the dominant contributor, led by the PRC and Japan, while South Asia and Central Asia recorded more pronounced increases, partly driven by loan book expansion. In contrast, NPL volumes declined overall in Southeast Asia, with improvements in Malaysia and Singapore offsetting pressures in Cambodia and Viet Nam.
Despite rising volumes in some markets, most economies maintained stable or improving NPL ratios, though persistent stress in countries like Bangladesh, Sri Lanka, and Viet Nam highlights the need for targeted reforms and stronger resolution frameworks.
Important note: Due to data limitations, not all countries within the region and subregions could be included. As a result, this analysis focus on the larger countries only—specifically those with a reported gross NPL stock exceeding $250 million as of 31 December 2024. Consequently, the total and sub-total figures presented are illustrative estimates, intended for discussion purposes only.
bn = billion, N/A = not applicable, NPL = nonperforming loan.
Notes: Original values are denominated in local currencies and converted to United States dollars ($), with exchange rates on relevant dates. The table only includes selected countries with the latest reported gross NPL stock of over $500 million as of 31 December 2022. Lower NPLs are shown in green and higher NPLs in dark brown on a graduated scale through the spectrum.
Sources: Statistics published by central banks; CEIC Data Company; and International Monetary Fund Financial Soundness Indicators. Data last accessed July 2025.
5-year context
Over the past 5 years, Asia’s NPL landscape has evolved significantly. NPLs rose temporarily in the pandemic shock in 2020 across many economies, particularly lower-income countries. However, from 2021 onward, a combination of regulatory forbearance, targeted fiscal support, and economic recovery helped stabilize asset quality. By 2024, several economies had returned to or improved upon their pre-pandemic NPL ratios, although vulnerabilities remain in certain sectors and jurisdictions.
| NPL Volume | NPL Ratio | |||||
|---|---|---|---|---|---|---|
| 2024($bln) | 2023($bln) | Variation | 2024 | 2023 | Variation | |
| East Asia | 520.35 | 525.43 | -0.97% | 1.4% | 1.5% | -0.1% |
| South Asia | 86.74 | 94.37 | -8.09% | 3.5% | 4.1% | -0.6% |
| Southeast Asia | 88.5 | 89.45 | -1.06% | 2.6% | 2.7% | -0.1% |
| Central Asia | 4.6 | 4.11 | 11.92% | 2.7% | 2.9% | -0.1% |
East Asia holds the largest volume of NPLs in the region, contributing $520.34 billion (74.3%) of Asia’s total. But NPL volume remained stable, decreasing a marginal $5.1 billion (1.0 percentage point) from 2024. Similarly, the average NPL ratio on the other hand slightly decreased, reaching 1.4% in 2024 (from 1.5% in 2024). This follows a consistent downward trend from 2020.
Within this subregion, the PRC remains the largest single contributor, with $449.2 billion in NPLs, down slightly from $454.3 billion in 2023. The PRC accounts for 62.5% of the regional total (or 86.3% of East Asia’s NPLs), mainly due to the sheer volume of its banking sector.
The PRC’s NPL ratio declined from 1.6% in 2023 to only 1.5% in 2024, continuing a 5-year trend of gradual improvement. The low and decreasing NPL ratio reflects ongoing efforts to manage credit risk and resolve legacy bad debts, such as regulatory reforms implemented, strengthened risk management practices, and targeted interventions in vulnerable sectors such as real estate and local government financing. However, underlying credit stress may still be masked by delayed recognition or regulatory discretion, especially in sectors like real estate and local government financing, which require particular attention in the current macroeconomic environment.
According to recent ZSAMC analysis, NPL performance has varied significantly across different categories of banks. Large state-owned and joint-stock banks have generally sustained lower NPL ratios, supported by more robust risk governance frameworks and diversified portfolios. In contrast, city commercial and privately owned banks have experienced modest increases in distressed assets, reflecting their greater exposure to regional economic pressures. Meanwhile, rural commercial banks have notably improved, largely due to restructuring initiatives and policy-driven clean-up efforts led by local governments. This divergence underscores the importance of institution-specific strategies and regulatory support in shaping NPL outcomes across the PRC’s banking system.
Japan follows the PRC in share of NPLs, at 9.0% of total regional NPLs (12.1% of East Asia). Japan’s NPL volume declined in 2024 by $0.2 billion (or 0.3%), reaching $63.14 billion. The NPL ratio remained stable at 1.2%, indicating that the decrease in NPLs was accompanied by strong growth in the overall loan book. This reflects a broader expansion in credit rather than a deterioration in asset quality, as the total volume of outstanding loans grew enough to offset the impact of existing bad loans.
The Republic of Korea’s banking sector remained resilient in 2024. NPL volume rose slightly, to $7.41 billion, but the NPL ratio remained at a low 0.4%. Over the past 5 years, the country has consistently maintained one of the lowest NPL ratios in the region, supported by strong regulatory oversight and prudent lending practices. The slight increase in volume is likely cyclical and does not indicate broader stress.
Mongolia improved significantly, reducing its NPL ratio from 7.5% to 5.1%, continuing a multiyear downward trend.
| Latest 2024 | Latest 2023 | Variation | ||||||
|---|---|---|---|---|---|---|---|---|
| ($bln) | % subtotal | % total | ($bln) | % subtotal | ($bln) | 2024-2023% | ||
| People's Republic of China | Upper Middle | 449.25 | 86.3% | 64.2% | 454.32 | 86.5% | -5.07 | -1.1% |
| Japan | High Income | 63.14 | 12.1% | 9.0% | 63.34 | 12.1% | -0.20 | -0.3% |
| Republic of Korea | High Income | 7.41 | 1.4% | 1.1% | 7.17 | 1.4% | 0.24 | 3.3% |
| Mongolia | Upper Middle | 0.55 | 0.1% | 0.1% | 0.60 | 0.1% | -0.05 | -8.3% |
| Over the past 5 years | Variation | ||||||
|---|---|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | 2024-2023 (pp) | ||
| People's Republic of China | Upper Middle | 1.8% | 1.7% | 1.6% | 1.6% | 1.5% | -0.1% |
| Japan | High Income | 1.2% | 1.3% | 1.2% | 1.3% | 1.2% | -0.1% |
| Republic of Korea | High Income | 0.5% | 0.4% | 0.3% | 0.4% | 0.4% | 0% |
| Mongolia | Upper Middle | 11.7% | 10.0% | 9.1% | 7.5% | 5.1% | -2.4% |