Author: Claudio Scardovi Publisher: Springer ISBN: 3319253638 Category : Business & Economics Languages : en Pages : 159
Book Description
This book discusses the most critical issues relating to the recovery of bad loans – a major problem that European banks urgently need to address and resolve. The book describes, in an innovative but also pragmatic way, the new approaches, techniques, and models for optimal management of non-performing loans (NPLs) and the maximization of their recovery value. Drawing on a rigorous academic background and the latest real-life experiences of major European banks, it details a novel means of dealing with NPLs based on velocity, the holistic use of tools and “accelerators”, and the active management of collaterals. Also, there is a specific focus on the smart use of “big data” and on the development of “bad banks”, at both the single bank and the system-wide level. Ultimately, credit workout is defined as a core capability for any competitive bank – and as a quite interesting business opportunity for independent, specialized “alpha” players.
Author: Asian Development Bank Publisher: Asian Development Bank ISBN: 9292691163 Category : Business & Economics Languages : en Pages : 262
Book Description
High and persistent levels of nonperforming loans (NPLs) have featured prominently in recent financial crises. This book traces NPL trends during and after crises, examines the economic impact of high NPLs, and compares the effectiveness of NPL resolution strategies across economies in Asia and Europe. The book distills important lessons from the experiences of economies using case studies and empirical investigation of ways to resolve NPLs. These findings can be invaluable in charting a course through the financial and economic fallout of the coronavirus disease (COVID-19) pandemic to recovery and sustained financial stability in Asia, Europe, and beyond.
Author: Luc Eyraud Publisher: International Monetary Fund ISBN: 1513576518 Category : Business & Economics Languages : en Pages : 85
Book Description
Sub-Saharan African countries are facing an unprecedented health and economic crisis that is likely to severely hurt credit quality and raise non-performing loans from already high levels. Banks have a critical role to play not only during the crisis by providing temporarily relief to businesses and households, but also during the recovery by supporting economic activity and facilitating the structural transformations engaged by the pandemic.
Author: Platon Monokroussos Publisher: Springer ISBN: 3319503138 Category : Business & Economics Languages : en Pages : 452
Book Description
This book explores the issue of private sector over-indebtedness following the recent financial crisis. It addresses the various challenges for policymakers, investors and economic agents affected by applied remedial policies as the private non-financial sector in Europe continues to face increased challenges in servicing its debt, with the problem mainly concentrated in several countries in the EU periphery and Eastern Europe. Chapters from expert contributors address reduced investment as firms concentrate on deleveraging and repairing their balance sheets, curtailed consumer spending, depressed collateral values and weak credit creation. They examine effective policies to facilitate private sector debt restructuring which may involve significant upfront costs in terms of time to implement and committed budgetary resources, as well as necessary reforms required to improve the broader institutional framework and judicial capacity. The book also explores the issue of over indebtedness in the household sector, contributing to the literature in establishing best practice principles for household debt.
Author: Dimitrios Anastasiou Publisher: ISBN: Category : Languages : en Pages : 28
Book Description
In the financial crisis of 2007, many banks with high level of NPLs found their sources of capital dried up, which occurred because of bad management. Huge amounts of NPLs imply both a lack of management methods and lack of capital. Also, high NPL levels have resulted to negative effects to banks' lending activity, making bank officers-managers more concern for the future of the whole banking system. The purpose of this study is twofold. First, to present some NPL management methods that already exist in the literature and second, to make a clear distinction between the ex-post and ex-ante management of NPLs. I tried to collect in one paper what other researchers suggested for the proper management and fight against NPLs for different kinds of banking systems around the world. Hopefully, by examining these methods, banks will be able to cope with the problem of NPLs.
Author: Publisher: ISBN: 9789294720634 Category : Languages : en Pages :
Book Description
The emergence and accumulation of non-performing loans (NPLs) on banks' balance sheets is commonly considered a microprudential issue. NPLs come to the attention of macroprudential authorities when they weaken a significant part of the financial system, threatening its stability or impairing one or more of its core functions, such as the provision of credit to the real economy. On a conceptual level, various imperfections may call for policy actions on the management of NPLs. These include unaddressed externalities, economies of scale and coordination failures, institutional distortions (stemming from the accounting, regulatory and tax treatment of NPLs or the judicial and market structures needed for their efficient resolution) and moral hazard vis-à-vis the providers of the banks' safety net. Externalities arise when banks neglect part of the social benefits or costs of actions affecting the origination and management of NPLs when individually deciding on such actions. For example, individual banks and society as a whole may differ in their assessment of the benefits and costs of generating more credit in a boom, with the potential implication of having to cope with a larger NPL problem in a bust (potentially damaging credit supply during the bust and the subsequent recovery). Externalities may be due to the way an unresolved stock of NPLs impairs investors' perceptions of the health of the financial system or prolongs a debt overhang problem, making bank funding more expensive and discouraging banks from taking up new lending opportunities. Other externalities may operate through the impact of the sale of foreclosed assets on prices of similar assets or through a generalisation of forbearance and evergreening strategies damaging banks' reputation as debt collectors and producing a deterioration in borrowers' payment culture. Coordination and collective action problems emerge in the presence of technological or strategic complementarities between agents' decisions. They are conceptually related to externalities and increasing returns to scale. In the absence of a coordinating institution, agents acting in a decentralised manner in their own best interests may become blocked into an inefficient allocation. For example, if creating a secondary market for NPLs requires setup costs that can only be recovered if the volume of trade in such a market is sufficiently large, the economy may be trapped in a situation in which such a market never gets started because it is always too small for the individual agents deciding at the margin whether to establish it. A similar argument has been applied to justify policies promoting the creation of (public and private) asset management companies (AMCs) specialised in buying and managing NPLs.
Author: Dirk Grötzinger Publisher: diplom.de ISBN: 3832492720 Category : Business & Economics Languages : en Pages : 70
Book Description
Inhaltsangabe:Abstract: Recently business magazines and newspapers have reported regularely about settled NPL deals. NPL is the abbreviation for a non-performing loan and simply describes a situation in which the debtor stopped complying to the terms agreed upon with the lender. Depending on the specific credit terms, the borrower has to pay interest and to repay the principle at a certain time. If this does not happen at a specific time the lender will demand the debtor to stick to the agreed terms and finally, in the event that the debtor does not change his or her behaviour, terminate the underlying contract. At what specific point in this process the loan should be qualified as a non-performing loan is not standardized. The range of past due periods varies from 30 days, over 90 days, to even 180 days. Neither accounting rules nor supervisory law specify yet under which conditions a financial institution has to classify certain loans as non-performing loans. However, this will change with the enforcement of Basel II, and also thanks to international distressed debt investors which demand for global standards. From time to time financial institutions amass huge stocks of these loans which finally leads to a wave of NPL sales. The market for NPL s evolves and is active for three to five years. After resolving the stock of NPL s it breaks down and stays relatively inactive for a longer time before it might develop again. Beside this time-related feature, a geographic pattern can be detected. The market does not evolve at the same time all around the world, but moves from one country or economic zone to the other. Right now, Germany is the most active market in Europe. The question is why. The sale of NPL s belongs neither for mortgage banks nor for commercial banks to their ordinary business. On the contrary, these banks are selling part of their core business the credit business. Of course defaulting debtors are not the most attractive ones for banks, and therefore who would to question the bank that wants to get rid of them. On the other hand banks dispose of traditional instruments to deal with these customers. The work-out department is usually in charge of collecting receivables and also the transfer of the respective receivables to debt-collecting agencies is a long exercised practice among banks. Are these traditional means no longer able to deal with the indubitable tremendous stock on NPL s in German banks and will the outsourcing [...]
Author: Claudio Scardovi Publisher: Springer ISBN: 3319669451 Category : Business & Economics Languages : en Pages : 242
Book Description
This book analyzes the set of forces driving the global financial system toward a period of radical transformation and explores the transformational challenges that lie ahead for global and regional or local banks and other financial intermediaries. It is explained how these challenges derive from the newly emerging post-crisis structure of the market and from shadow and digital players across all banking operations. Detailed attention is focused on the impacts of digitalization on the main functions of the financial system, and particularly the banking sector. The author elaborates how an alternative model of banking will enable banks to predict, understand, navigate, and change the external ecosystem in which they compete. The five critical components of this model are data and information mastering; effective use of applied analytics; interconnectivity and “junction playing”; development of new business solutions; and trust and credibility assurance. The analysis is supported by a number of informative case studies. The book will be of interest especially to top and middle managers and employees of banks and financial institutions but also to FinTech players and their advisers and others.
Author: Florian Manz Publisher: ISBN: 9783848765065 Category : Bank loans Languages : en Pages : 150
Book Description
Based on the recent European regulatory policies on non-performing loans (NPL), the dissertation 'Non-Performing Loans: Determinants-Default-Divestiture' presents four stand-alone research papers on the determinants, default and divestiture of NPL, which explore the effectiveness of the proposed restructuring mechanisms. To begin with, determinants of the situation described by the term NPL are diligently examined, with the author employing a systematic literature review at the levels of macroeconomics, banks and loans. Subsequently, three empirical research studies are devoted to an analysis of security pricing in reaction to NPL divestiture activity in the European equity and debt capital market. The results offer the banking industry as well as the EU and its member states a nuanced idea of how to deal with large amounts of risky assets in times of constantly changing economic circumstances.
Author: Joerg Ruetschi Publisher: John Wiley & Sons ISBN: 1119858836 Category : Business & Economics Languages : en Pages : 301
Book Description
Transform your financial organisation’s formula for value creation with this insightful and strategic approach In Transforming Financial Institutions through Technology Innovation and Operational Change, visionary turnaround leader Joerg Ruetschi delivers a practical and globally relevant methodology and framework for value creation at financial institutions. The author demonstrates how financial organisations can combine finance strategy with asset-liability and technology management to differentiate their services and gain competitive advantage in a ferocious industry. In addition to exploring the four critical areas of strategic and competitive transformation — financial analysis, valuation, modeling, and stress — the book includes: Explanations of how to apply the managerial fundamentals discussed in the book in the real world, with descriptions of the principles for reorganization, wind-down and overall value creation An analysis of the four key emerging technologies in the financial industry: AI, blockchain, software, and infrastructure solutions, and their transformational impact Real-world case studies and examples on how financial institutions can be repositioned and rebuilt on a path of profitability Perfect for managers and decision makers in the financial services industry, Transforming Financial Institutions through Technology Innovation and Operational Change is also required reading for regulators, tech firms, and private equity and venture capital funds.
Author: Claudio Scardovi
Author: Asian Development Bank
Author: Luc Eyraud
Author: Platon Monokroussos
Author: Dimitrios Anastasiou
Author: 
Author: Dirk Grötzinger
Author: Claudio Scardovi
Author: Florian Manz
Author: Joerg Ruetschi