Non performing loans and available solutions

Current amount of Non-performing loans in Iranian banking system has caused blocking of about 20% of total liquidity. By refer to statistics, Non-performing loans approximately consist of 14%- 15% of total credits of banks in Iran that is up to fourfold of the global norms. So, Non-performing loans became a real impasse in Iranian banking system and it is necessary to attempt for solving this problem by researching its reasons. In this article we explore and categorize reasons of shaping non-performing loans. Results show that managing deviations, decision-making mistakes and legislation problems are the main reasons of this condition.