👉 The term "nonperforming" is used in finance and accounting to describe a financial instrument that has not performed as expected, either because it was not purchased or sold at an acceptable price, or due to unforeseen events such as market volatility. The goal of a nonperforming asset (NPA) is to identify and sell the asset before it becomes impaired by a significant loss in value, which can be difficult if not possible due to regulatory requirements or other factors. Nonperforming assets are
