The Impact of Collateral Diversification in Commercial Banks on Bank Loans

In the aftermath of global financial crises and recurrent banking instabilities, the quality and composition of loan portfolios have become a focal point of concern for both regulators and financial institutions . One of the most pressing issues in modern banking is the growing volume of non-performing loans (NPLs), which not only undermine the stability of individual banks but also threaten macroeconomic resilience . Understanding the determinants of NPLs is therefore crucial for ensuring the soundness of the financial system .