High Non-Performing Loans (NPLs) •  The prevalence of high non-performing loans can also limit banks’ lending capacity and/or interfere with policy transmission and therefore impair the effectiveness of monetary policy. Although the banking sector’s NPL ratio has declined from 23.5 percent in April 2018 to 18.9 percent in April 2019, the current ratio still remains very high.
Some of these financial services are more profitable than others, and thus, add greater shareholder value. The concern addressed by anti-tying restrictions is that banks may force customers to take unwanted products in order to obtain needed services - primarily loan products. As a brief background, a special anti-tying statute applies to banks.