Setting a model with 3000 loans issued a month, interest rate of 1% a day, 80 EUR a loan, COF irrelevant as it is not calculated inside, NPL ratio variable, 50% of loans additional income from 6 EUR for highest NPL to 1 EUR for NPL of 9%
This graph represent the value added created (diameter of the bubble) depending on the NPL (horizontal axis) and additional income in EUR per loan (6 EUR - 1 EUR). As the loan with NPL of 14,83% did not generate any value -> bubble is non-existent.
