Training on Non-Performing Loans Management

Non-performing loans (NPLs) can significantly impact the financial health and stability of banks and financial institutions. Ineffective management of NPLs increases credit risk, reduces profitability, and strains regulatory compliance. Professionals require structured approaches to identify, assess, and recover distressed loans efficiently while minimizing losses.

This 5-day course provides participants with comprehensive knowledge of NPL management across its full lifecycle. Key topics include identification and assessment of NPLs, risk analysis, loan restructuring strategies, collection and recovery techniques, regulatory compliance, and innovative approaches to minimizing financial impact. Participants will also explore frameworks for monitoring, reporting, and managing loan portfolios to reduce exposure to bad debt.

Through case studies, simulations, and practical exercises, participants will develop skills to implement effective NPL management strategies, make informed credit decisions, and optimize recovery while maintaining customer and regulatory relationships. Emphasis is placed on actionable techniques, risk mitigation, and strategic decision-making in real-world banking environments.

By the end of the program, learners will be able to identify and assess non-performing loans, implement effective recovery strategies, mitigate credit risk, and strengthen the financial stability of their institutions.

Duration

5 Days

Who Should Attend

• Bank and financial institution managers
• Credit risk analysts and officers
• Loan officers and managers
• Financial analysts
• Risk management professionals
• Regulatory and compliance officers
• Asset recovery specialists
• Professionals involved in loan restructuring and recovery

Organizational Impact

• Strengthens financial health and stability by reducing non-performing loans (NPLs).

• Minimizes losses through effective debt recovery and stronger credit policies.

• Enhances reputation and credibility with regulators, investors, and stakeholders.

Personal Impact

• Equips participants with in-demand skills for banking and finance careers.

• Supports career growth into senior leadership, risk oversight, or credit management roles.

• Enables direct contribution to organizational stability through expert NPL management.

• Builds confidence to lead and champion proactive risk management practices.

By the end of this course, participants will:

• Understand the causes and implications of non-performing loans.
• Identify and assess non-performing loans effectively.
• Develop and implement strategies for managing NPLs.
• Navigate the regulatory and compliance landscape related to NPLs.
• Utilize financial and legal tools for loan recovery and restructuring.
• Implement best practices in NPL resolution to minimize financial losses.
• Enhance risk management frameworks to prevent future NPL occurrences.

Module 1: Introduction to Non-Performing Loans

• Overview of non-performing loans
• Causes and implications of NPLs
• Identification and classification of NPLs
• Impact of NPLs on financial institutions

Module 2: Regulatory and Compliance Framework

• Regulatory requirements for NPL management
• Compliance strategies for NPLs
• International standards and best practices
• Case studies on regulatory compliance

Module 3: Assessment and Management Strategies

• Risk assessment of non-performing loans
• Developing management strategies for NPLs
• Portfolio management techniques
• Early warning systems and monitoring

Module 4: Recovery and Resolution Techniques

• Financial tools for loan recovery
• Legal aspects of NPL management
• Loan restructuring strategies
• Negotiation and mediation techniques

Module 5: Best Practices and Future Prevention

• Implementing best practices in NPL management
• Case studies on successful NPL resolution
• Enhancing risk management frameworks
• Preventive measures and future outlook