Training on Non-Performing Loans Management

Overview

Course Objectives

By the end of the course, participants will be able to:

·Understand alternative approaches to NPLs management and recovery structures

·Understand different NPLs recovery strategies/techniques

·Understand accounting treatment of non-performing loans and loan loss provisioning

·Understand IFRS 9 accounting standard for NPL management

Target Audience

This course is aimed at credit controllers, risk management professionals, corporate finance professionals and corporate bankers

What you will learn

Course Outline

Introduction to Non-Performing Loans

·        Definition of NPL

·        NPL Types

·        Systematic impact of NPL

NPL Strategy

·        Assessing the operating environment

·        Developing the NPL strategy

·        Implementing the operational plan

·        Embedding the NPL strategy

NPL governance and decision making

·        Steering and decision making

·         NPL operating model

·         Control framework

·         Monitoring of NPLs and NPL workout activities

·         Early warning mechanisms/watch-lists

Forbearance

·         Forbearance options and their viability

·         Sound forbearance processes

·         Affordability assessments

NPL Recognition

·         Implementation of the NPE definition

·         Link between NPEs and forbearance

·         Further aspects of the non-performing definition

·         Links between regulatory and accounting definitions

NPL impairment in line with IFRS 9

·        Overview of IFRS 9

·        Overview of impairment

·        Probabilities of Default considerations

·        Loss Given Default considerationss

·        Individual estimation of provisions

·        Collective estimation of provisions

·        Other aspects related to NPL impairment measurement

NPL write-offs

·        Overview of NPL write-offs

·        Timeliness of provisioning and write-off

·        Provisioning and write-off procedures