What are the key factors contributing to the decrease in non-performing assets of banks?

Exploring the reasons behind the multi-year low in non-performing assets of banks and the increase in profits.

Effective risk management practices implemented by banks to identify and mitigate potential non-performing assets.
Economic stability and growth leading to improved loan repayment capacity of borrowers.
Stringent regulatory measures and increased oversight by central banks to ensure compliance and monitoring of asset quality.
Introduction of restructuring schemes and asset resolution frameworks to address stressed assets and reduce non-performing loans.
Improved credit underwriting standards and due diligence processes to minimize the risk of loan defaults.
Enhanced asset quality monitoring systems and early warning mechanisms to identify deteriorating loans at an early stage.

These factors collectively contribute to the decline in non-performing assets of banks and the subsequent increase in profits.

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