Total loans on banks' book. These are the fund that banks have lent out. The loans contribute to banks' income. Some borrower of the loans may stop paying their payment. In this case, the loan is called non-performing loans.
Loans can be divided into residential loans, commercial loans or consumer loans. Peter Lynch loved
Beaware
residential loans.
The percentage of non-performing loans should be as small as possible. Normally you want to see this number smaller than 1%.