1. describing a loan or asset on which interest is not being recorded as income because payment is unlikely
Usage: banking; finance

1. the status of a loan or asset on which interest is not being recorded as income
Usage: banking; finance

Examples

• The bank placed the delinquent mortgage on nonaccrual status.
• Nonaccrual loans increased significantly during the economic downturn.
• The company’s nonaccrual assets totaled $2.3 million.
• Once a loan becomes nonaccrual, the bank stops recognizing interest income.
• The auditors reviewed all nonaccrual accounts for proper classification.
• Management decided to move the troubled loan to nonaccrual.
• The bank’s nonaccrual ratio improved this quarter.