1 Non-performing assets is a general concept, aiming at the bad debts in accounting subjects, mainly but not limited to the non-performing assets of banks, governments, securities, insurance and funds.

Strictly speaking, the non-performing assets of banks are also called non-performing debts, the most important of which is non-performing loans, which refer to loans in which borrowers cannot repay the principal and interest on time and in quantity.

The non-performing assets of government, securities, insurance, funds and trusts and non-financial enterprises shall be subject to uniform accounting standards. This kind of non-performing assets refers to the net loss and potential loss (funds) of assets that the enterprise has not yet dealt with, as well as the estimated loss amount of various problem assets that should not be depreciated according to the provisions of the financial accounting system.

Interest is the use fee of money in a certain period of time, and it refers to the reward that money holders (creditors) get from borrowers (debtors) for lending money or monetary capital. Including deposit interest, loan interest and interest generated by various bonds.

Under the capitalist system, the source of interest is the surplus value created by hired workers. The essence of interest is a special transformation form of surplus value and a part of profit.

definition

1. Money other than the principal of deposits and loans (different from "principal").

2. The abstract interest point refers to the value added when monetary funds are injected into the real economy and returned. Generally speaking, interest refers to the remuneration paid by the borrower (debtor) to the lender (creditor) for using the borrowed currency or capital. Also known as the symmetry of sub-fund and parent fund (principal). The calculation formula of interest is: interest = principal × interest rate × deposit period (i.e. time).

Interest is the reward that the fund owner gets for lending the fund, which comes from a part of the profits that the producer makes by using the fund to play its operational functions. Refers to the value-added amount brought by monetary funds injected into the real economy and returned. The calculation formula is: interest = principal × interest rate × deposit period × 100%.

3. Classification of bank interest

According to the different nature of banking business, it can be divided into bank interest receivable and bank interest payable.

Interest receivable refers to the remuneration that the bank obtains from the borrower by lending to the borrower; It is the price that the borrower must pay for using the funds; It is also part of the bank's profits.

Interest payable refers to the remuneration paid to depositors by banks to absorb their deposits; It is the price that banks must pay to absorb deposits, and it is also part of the cost of banks.