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An NPA, or non-performing asset is a classification used by financial institutions that refers to loans that are in jeopardy of being in default.

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What is a non-performing asset?

My understanding of "nonperforming assets", any asset that you have accumulated that cannot be used in your business. For example: If I am the franchise owner of McDonald's, my deep fryer that I use to make the fries would be considered an asset. It is an asset that I use in my business. The building itself is also a performing asset. So those would be examples of performing assets. Non-performing example: I am the franchise owner of McDonald's and I purchase a piece of property to block another restaurant from being in a location that possibly would negatively affect my business. This purchase has a purpose, but is not performing within my business. Possibly another example would be if I purchase a Corvette (Car or boat) for my own use, but purchased it through my business, that also would be a non-performing asset.


What does it mean to borrow against an asset?

Borrowing against an asset means using the value of that asset as collateral to obtain a loan. This allows the borrower to access funds based on the asset's worth, with the understanding that if the loan is not repaid, the lender can take possession of the asset.


What does the term finance lease mean?

The Term "Finance Lease" means that the customer will pick an asset such as a vehicle and the lender will purchase the asset. The customer will be able to use the asset while they pay installments or rental fees, with the option to purchase the asset.


What does it mean to diversify a portfolio?

Having a number of different asset classes in the portfolio. Asset classes include stocks, bonds, currencies, commodities and cash equivalents.


What exactly does the term asset holdings mean in banking?

the bank has put a hold on your assets

Related Questions

Is a nonperforming loan still an asset to a bank?

No. Such a loan is called a "Non-Performing Asset" or NPA. They signify loans that haven't earned any interest or principal to the bank for a consecutive period of 3 months. They are considered losses and banks try to keep their NPA's as low as possible.


What does asset mean what does asset mean?

asset is anything that appreciate in value over a period of time


Why fixed asset are subject to depreciation?

fixed asset does not mean that the value of asset no decrease in future it,s for sure, that,s why we depreciate it annually.....


What is a non-performing asset?

My understanding of "nonperforming assets", any asset that you have accumulated that cannot be used in your business. For example: If I am the franchise owner of McDonald's, my deep fryer that I use to make the fries would be considered an asset. It is an asset that I use in my business. The building itself is also a performing asset. So those would be examples of performing assets. Non-performing example: I am the franchise owner of McDonald's and I purchase a piece of property to block another restaurant from being in a location that possibly would negatively affect my business. This purchase has a purpose, but is not performing within my business. Possibly another example would be if I purchase a Corvette (Car or boat) for my own use, but purchased it through my business, that also would be a non-performing asset.


What does it mean to borrow against an asset?

Borrowing against an asset means using the value of that asset as collateral to obtain a loan. This allows the borrower to access funds based on the asset's worth, with the understanding that if the loan is not repaid, the lender can take possession of the asset.


What is mean by tourism asset?

An asset is something that you posses that is valuable. A tourism asset is a country, city, town or region that owns a feature such as the Great Pyramids that brings people and their money to their country.


What does the term finance lease mean?

The Term "Finance Lease" means that the customer will pick an asset such as a vehicle and the lender will purchase the asset. The customer will be able to use the asset while they pay installments or rental fees, with the option to purchase the asset.


What does residue value mean?

is it the value of what remains after depreciation from an asset


What does FAM Number mean?

"Fixed Asset Manager" number in Intuit Quickbooks. Must have the Fixed Asset Manager add-on to modify/manage.


What do you mean by performing asset?

An NPA, or non-performing asset is a classification used by financial institutions that refers to loans that are in jeopardy of being in default.


What does it mean to diversify a portfolio?

Having a number of different asset classes in the portfolio. Asset classes include stocks, bonds, currencies, commodities and cash equivalents.


What does net value mean?

it means how much the current asset is worth in the market