What Is a Delinquency Rate?

Loan default rate refers to the ratio of corporate loan default to its total loan balance. It is an indicator used to measure the extent of corporate loan default.

Loan default rate

Right!

Loan default rate refers to the ratio of corporate loan default to its total loan balance. It is an indicator used to measure the extent of corporate loan default.

The formula is:

Loan default rate = (loan default / total loan balance) × 100%

It can be seen that the higher the loan delinquency rate, the lower the corporate solvency, and the higher the risk of the loan issued by the bank to the enterprise; otherwise, the lower the risk. It is worth noting that the loan arrears here are from a certain enterprise, it is only a part of the bank loan arrears mentioned earlier; the total balance of corporate loans is also a part of the total bank loans.

1 Edited by the Office of the Leading Group of the National Statistical Research Plan Project. New Perspectives on Statistics. China Statistics Press, January 2003, 1st edition. ^[1]