As global economic uncertainties and market disruptions persist, managing Non-Performing Loans (NPLs) has become a critical challenge for financial institutions. NPLs not only tie up capital but also impact profitability, reputation, and long-term financial stability. Effective NPL management can improve asset quality, enhance liquidity, and boost investor confidence.

Given the growing complexity of credit risk, there is a pressing need for banks to adopt more sophisticated strategies to manage NPLs. According to industry experts, the future of banking will demand a shift toward more proactive and data-driven approaches to loan management, helping institutions anticipate risk and mitigate losses more efficiently.

This training focuses on equipping banking professionals with the tools and knowledge to effectively manage NPL portfolios. Participants will learn best practices for identifying, restructuring, and resolving NPLs, with special attention to the evolving regulatory landscape. The training will also explore innovative techniques for managing credit risk, improving recovery rates, and strengthening the overall balance sheet of the institution.

Target Participants

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

Course Duration

Online      7 Days

Classroom-based      5 Days

What you will learn

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

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 considerations
• 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

Training Approach

This course is delivered by our seasoned trainers who have vast experience as expert professionals in their respective fields of practice. The course is taught through a mix of practical activities, presentations, group works and case studies. Training notes and additional reference materials are provided to the participants.

Certification

Upon successful completion of this course, participants will be issued a certificate.

Tailor-Made Course

We can also do this as a tailor-made course to meet organization-wide needs.

Course Booking

Please use the “book now” or “inquire” buttons on this page to either book your space or make further enquiries