Download or read book How to Assess the Benefits of Nonperforming Loan Disposal in Sub Saharan Africa Using a Simple Analytical Framework written by Irina Bunda and published by International Monetary Fund. This book was released on 2021-06-08 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: The coronavirus (COVID-19) crisis, which has hit financial systems across Africa, is likely to deteriorate banks’ balance sheets. The largest threat to banks pertains to their loan portfolios, since many borrowers have faced a sharp collapse in their income, and therefore have difficulty repaying their obligations as they come due. This could lead to a sharp increase in nonperforming loans (NPLs) in the short to medium term.

Download or read book Nonperforming Loans in Asia and Europe Causes Impacts and Resolution Strategies written by Asian Development Bank and published by Asian Development Bank. This book was released on 2021-12-01 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book A Strategy for Developing a Market for Nonperforming Loans in Italy written by Nadège Jassaud and published by International Monetary Fund. This book was released on 2015-02-06 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Addressing the buildup of nonperforming loans (NPLs) in Italy since the global financial crisis will remain a challenge for some time and be important for supporting a sustained, robust economic recovery. The buildup reflects both the prolonged recession as well as structural factors that have held back NPL write-offs by banks. The paper discusses the impediments to NPL resolution in Italy and a strategy for fostering a market for restructuring distressed assets that could support corporate and financial restructuring.

Download or read book Bank Asset Quality in Emerging Markets written by Mr.Reinout De Bock and published by International Monetary Fund. This book was released on 2012-03-01 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the vulnerability of emerging markets and their banks to aggregate shocks. We find significant links between banks' asset quality, credit and macroeconomic aggregates. Lower economic growth, an exchange rate depreciation, weaker terms of trade and a fall in debt-creating capital inflows reduce credit growth while loan quality deteriorates. Particularly noteworthy is the sharp deterioration of balance sheets following a reversal of portfolio inflows. We also find evidence of feedback effects from the financial sector on the wider economy. GDP growth falls after shocks that drive non-performing loans higher or generate a contraction in credit. This analysis was used in chapter 1 of the Global Financial Stability Report (September 2011) to help evaluate the sensitivity of banks' capital adequacy ratios to macroeconomic and funding cost shocks.

Download or read book Resolving Nonperforming Loans in Sub Saharan Africa in the Aftermath of the COVID 19 Crisis written by Luc Eyraud and published by International Monetary Fund. This book was released on 2021-06-08 with total page 85 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Optimising Distressed Loan Books written by John Michael Sheehan and published by Harriman House. This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The fundamental question posed by this book is why banks fail to maximize distressed loan collections where the distressed debt investor succeeds. The answer to this question is found in examination of the "Bank Arb. Trade"--the ability of sophisticated investors to uncover value, or arbitrage, in bank loan portfolios that the banks themselves simply miss or cannot realize.

Download or read book Nonperforming Loans in the GCC Banking System and their Macroeconomic Effects written by Mr.Raphael A. Espinoza and published by International Monetary Fund. This book was released on 2010-10-01 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: According to a dynamic panel estimated over 1995 - 2008 on around 80 banks in the GCC region, the NPL ratio worsens as economic growth becomes lower and interest rates and risk aversion increase. Our model implies that the cumulative effect of macroeconomic shocks over a three year horizon is indeed large. Firm-specific factors related to risk-taking and efficiency are also related to future NPLs. The paper finally investigates the feedback effect of increasing NPLs on growth using a VAR model. According to the panel VAR, there could be a strong, albeit short-lived feedback effect from losses in banks’ balance sheets on economic activity, with a semi-elasticity of around 0.4.

Download or read book A Strategy for Resolving Europe s Problem Loans written by Mr.Shekhar Aiyar and published by International Monetary Fund. This book was released on 2015-09-24 with total page 79 pages. Available in PDF, EPUB and Kindle. Book excerpt: Europe’s banking system is weighed down by high levels of non-performing loans (NPLs), which are holding down credit growth and economic activity. This discussion note uses a new survey of European country authorities and banks to examine the structural obstacles that discourage banks from addressing their problem loans. A three pillared strategy is advocated to remedy the situation, comprising: (i) tightened supervisory policies, (ii) insolvency reforms, and (iii) the development of distressed debt markets.

Download or read book The sale of non performing loans beneficial for a bank written by Dirk Grötzinger and published by diplom.de. This book was released on 2006-01-25 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 [...]

Download or read book Non Performing Loans and Resolving Private Sector Insolvency written by Platon Monokroussos and published by Springer. This book was released on 2017-07-26 with total page 452 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book Corporate Restructuring written by Michael Pomerleano and published by World Bank Publications. This book was released on 2005 with total page 436 pages. Available in PDF, EPUB and Kindle. Book excerpt: In light of the periodic financial crises of the late 1990s, there has been a growing recognition of the need for a strategy to avoid and mitigate the severity of crises in the corporate sector, requiring the complementary efforts of policymakers, regulators, lawyers, insolvency experts and financiers. This publication examines the issue of corporate restructuring, drawing on case studies of corporate crises in Indonesia, Korea, Malaysia and Thailand among others; and discusses a range of topics including the key role of governments in securing an enabling legal system, effective out-of-court workouts, supportive tax regimes, policy and regulatory initiatives to address systemic corporate problems.

Download or read book Non Performing Loans Non Performing People written by Melissa García-Lamarca and published by University of Georgia Press. This book was released on 2022-11-15 with total page 241 pages. Available in PDF, EPUB and Kindle. Book excerpt: Non-Performing Loans, Non-Performing People tells the previously untold stories of those living with mortgage debt in times of precarity and explores how individualized indebtedness can unite resistance in the struggle toward housing justice. The book builds on several years of Melissa García-Lamarca’s engagement with activist research in Barcelona’s housing movement, in particular with its most prominent collective, the Platform for Mortgage-Affected People (PAH). What García-Lamarca learned from fellow activists and the movement in Barcelona pushed her to rethink how lived experiences of indebtedness connect to larger political- economic processes related to housing and debt. The book is also inspired by feminist scholars who integrate the lens of everyday life into explorations of contemporary political economy and by anthropologists who connect macroprocesses to lived experience. Distinctive in how it integrates a racialized, gendered, and decolonial perspective, García-Lamarca’s research of mortgaged lives in precarious times explores two principal phenomena: first, how financial speculation is experienced in the day-to-day and differentially embedded in the dynamics of (urban) capital accumulation, and second, how collective action can unleash the liberating possibility of indebtedness.

Download or read book Debt in Times of Crisis written by Thomas Poufinas and published by Springer Nature. This book was released on 2021-08-27 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt: Debt, private and public, and in particular excessive debt, has been debated to be one of the root causes of economic crises. At the same time, economic crises are believed to lead to an increase of debt. This book, through a range of contributors, explores certain constituents of an economy and attempts to identify their contribution to debt (public and private), especially in times of crisis; namely, bonds, tariffs, social security and non-performing loans (NPLs). Furthermore, it captures the (implicit) impact of the demography on debt through tariffs and social security and investigates the effect of quantitative easing/purchase programs and as well as crises on debt. In addition, the (cost of the) reserve that a state may want to provision for, in order to secure its economy from defaulting within a certain time horizon, is also addressed and calculated. This calculation offers an alternative valuation, or pricing, of (excess) debt (default protection). This book aims to offer a comparative study of countries – especially those with a history of excessive debt - and intends to realize whether an economic crisis can genuinely deteriorate debt, or whether the debt unsustainability is preexisting to the crisis. It will be relevant to students and researchers interested in economic policy and growth.

Download or read book Factors Affecting Non Performing Loan in the Case of the Development Bank of Ethiopia written by Mequanint Zeleke and published by GRIN Verlag. This book was released on 2020-03-02 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: Research Paper (undergraduate) from the year 2018 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, , language: English, abstract: This study is attempted to examine factors affecting non -performing loan of development bank of Ethiopia. The main objective is to examine the factors affecting nonperforming loans in DBE central region. After problem identification, research hypothesis was developed which inquires the relationship and effect of non-performing loans on development bank of Ethiopia. Both secondary and primary data were used in the research. The data is then analyzed using descriptive, correlation and regression techniques through SPSS and Stata software program. The findings of the study revealed that gross domestic product has a positive impact on the occurrence of non-performing loans while other model variables unemployment, inflation rate and exchange rate have no impact on the occurrence of non-performing loan in which negatively affect non-performing loan. according to my study result. Also the result of the primary data indicated that in regarding about customer's specific causes, the result showed that credit culture of customers, lack of business knowledge, delayed approval, profit of the business, business location were determinants of non-performing loan while bank specific factors include poor credit assessment, poor customer selection, aggressive lending policy, borrowers culture, credit size affected non-performing loan.

Download or read book Achieving Price Financial and Macro Economic Stability in South Africa written by Nombulelo Gumata and published by Springer Nature. This book was released on 2021-05-27 with total page 556 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book explores the macro-financial effects of central bank balance sheets, macro-prudential tools, and financial regulation in South Africa. How employment can be maximised while keeping inflation low and stable is examined in relation to the structural changes required to alter the composition of South African bank balance sheets. Quantitative methods and approaches are utilised to highlight the impact of suggested policies. This book aims to outline strategies and policy interventions that can help achieve the National Development Plan in South Africa. It will be of interest to researchers and policymakers working within development economics, African economics, development finance, and financial policy.

Download or read book Performing and Non performing Loan Transactions Across the World written by Simon Gottlieb Grieser and published by . This book was released on 2014 with total page 437 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The exponential growth of performing and non-performing loan transactions during the last two decades has generated amazing benefits for both banks as sellers and investors as buyers across the boundaries. Fully updated for 2014, and with the contribution from 34 practitioners, this second edition provides the reader with the principles of arranging, servicing, financing and exit strategies of performing and non-performing loans. The reader will have access to 12 country reports."--Publisher.

Download or read book From Good to Bad Bankers written by Aristóbulo de Juan and published by Springer. This book was released on 2019-03-13 with total page 149 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bankers are administrators of other people’s money, and they are responsible both to their depositors and to other stakeholders. Human nature being what it is, however, they sometimes fall prey to overweening ambition, coming to see themselves as the rightful beneficiaries of the moneys entrusted to them. This can lead them to make poor lending decisions and engage in risky practices, eventually moving on to cosmetic accounting and the concealment of problems, speculation and even outright fraud. Supervisors are there to prevent such behaviour, of course. They are responsible to government and the general public alike for the stability of the financial system, the proper allocation of financial resources by the banks and the protection of depositors and creditors. Their responsibility is, then, subsidiary to that of the bankers themselves. Where supervision is lax and ineffective, however, it encourages bad management by bankers, creating a vicious circle that eventually leads to financial crises, which has most often to be cured using tax-payers’ money. Of course, it also hurts the broader economy. That is why the inseparable trio of regulation, supervision and resolution must exist. In this collection of his writings over a period of some 50 years, Aristóbulo de Juan describes the causes, characteristics and consequences of financial crises based on his own experience as a central banker, world bank expert and consultant spanning a career of more than 55 years. In a nutshell, the papers brought together in this book recount circumstances that have always plagued banking, and that are only too likely to recur in the future.