Rising Costs Lead to Higher Non-Performing Loans in Housing and Auto Segments
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The National Credit Bureau said rising non-performing loans (NPLs) in housing and auto segments are concerning as costs and rates rise.
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NPLs declined year-on-year in Q3 2023 but rose from last quarter. Auto loan NPLs grew over 5% quarterly.
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Debt restructuring helped but hasn't curbed NPLs as loan terms don't fit products. Auto NPLs remained steady.
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70% of mortgage NPLs are from specialised institutions, affected by costs. NPLs are steady despite restructuring.
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Household debt rose year-on-year and quarterly. The bureau's figure is lower than the central bank's.