Portfolio at Risk

PAR

The outstanding principal of all loans with any payment overdue by more than a set number of days, as a share of the gross loan portfolio. The whole balance of a late loan counts, not just the missed instalment.

Formula

PAR(n) = outstanding principal of loans > n days overdue ÷ gross loan portfolio

Example

If KES 4.2M of a KES 60M portfolio sits in loans more than 30 days late, PAR30 is 7%.

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Arrears Collection Efficiency Days Past Due Gross Loan Portfolio Loan Loss Provision Loan Loss Reserve Loan Rescheduling / Restructuring Non-Performing Loan PAR30 PAR90 Recovery Repayment Rate

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Portfolio at Risk

Formula

Example

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