MACROECONOMIC FACTORS INFLUENCING NON PERFORMING LOANS IN AFGHAN BANKS

Non-performing loans (NPLs) are an important indicator of credit  risk and banking-sector stability. This study examines the potential influence of  macroeconomic factors on non-performing loans in Afghan banks, focusing on  economic growth, inflation, unemployment, and exchange rate movements. The  study uses a qualitative analytical approach based on academic literature and reports  from international institutions. It discusses how economic instability can affect  borrowers’ repayment capacity and the quality of banks’ loan portfolios. The World ank has identified rising non-performing loans, regulatory uncertainty, and  constrained lending activity as continuing challenges for Afghanistan’s banking  sector.