ERM Glossary: Arrears (or delinquency)

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Banking customers (or customers more generally) are said to be in arrears when they are behind in fulfilling their obligations resulting in an outstanding loan to them being unpaid or overdue. Such a customer is also said to be in a state of delinquency. When a customer is in arrears, the entire outstanding balance is said to be delinquent, meaning that delinquent balances are the total outstanding loans on which payments are overdue.


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