Non-performing loans The high stock of non-performing loans (NPLs) on banks’ balance sheets remains the major challenge for Greek banks and a serious constraint on their lending capacity. Banks are using the 3/8  BIS central bankers' speeches  options provided by the improved legal and regulatory framework, which has removed significant institutional and administrative impediments to NPL reduction.
These important reforms have begun to bear fruit, as indicated by the reduction of the stock of NPLs to € billion at endDecember 2018 (or 45.4% of total loans), down from a peak of € billion in March 2016. However, the NPL stock is still excessively high.