Financial Outlook of the OIC Member Countries 2016
9
Impaired loans, or non-performing loans, NPLs, over gross loans show how healthy of a bank’s
loans. NPLs are the loans that have repayment problems. The higher the ratio of NPL over
gross loans the higher the problem a bank faces to continue its operations. Figure 5 presents
the ratios by country in simple and weighted averages. The lowest figure is in Algeria with 0.16
per cent. Among top 5 countries in total assets, Turkey has the highest figure with 2.9 per cent.
Figure 5: Impaired Loans over Gross Loans in 2014
Panel A. All countries with weighted average sorted
Panel B. Countries with ratio less than 5 per cent in weighted average
Note: Brunei Darussalam, Chad, Comoros, Guinea Bissau, Mauritania, Sudan and Suriname are excluded due to
unavailable data. Somalia has no bank coverage in Bankscope database.
Source: COMCEC Coordination Office staff estimations from Bankscope database
Bankscope database provides high level coverage of banks in OIC member countries. It is very
important to access data to provide evidence base policy recommendations. Based on available
data obtained from Bureau van Dijk’s Bankscope database, among 57 OIC member countries,
top 5 countries in terms of total assets of their banking systems cover about 60 per cent of all
assets in OIC member countries. Top 10 cover 80 per cent. This indicates different needs or
policy agenda of top 10 and the rest of the countries.
Bank concentration is low for about half of the OIC member countries. The number of
countries showing low bank concentration might be higher if all active banks could be included
in the data. For 15 countries, banks profitability is high with above 2 per cent in USD
0,00
10,00
20,00
30,00
40,00
50,00
60,00
70,00
ALGERIA
TURKMENISTAN
AFGHANISTAN
INDONESIA
IRAQ
SAUDI ARABIA
GABON
TAJIKISTAN
ISLAMIC REPUBLIC OF…
KYRGYZSTAN
MALAYSIA
BURKINA FASO
QATAR
COTE D'IVOIRE
PALESTINIAN…
TOGOOMANNIGER
TURKEY
LIBYA
GAMBIANIGERIA
MOZAMBIQUE
UZBEKISTAN
BAHRAINKUWAITGUINEA
MOROCCO
MALI
UNITED ARAB…
CAMEROON
JORDANLEBANONUGANDA
EGYPT
TUNISIAGUYANA
BANGLADESH
SENEGAL
KAZAKHSTAN
PAKISTANALBANIA
YEMEN
AZERBAIJAN
BENIN
SIERRA LEONE
DJIBOUTI
MALDIVES
SYRIAN ARAB REPUBLIC
Simple Weighted
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
4,00
4,50
5,00