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Non-Performing Loans Management

Registration

The course is split up into 4 online interactive training sessions each 3.5 hours. For detailed content refer Course Outline.

Date : 19th – 22nd April 2021
Time : 13:00 – 16:30 CET

Price per participant : 1,400 EUR *

*Alumni discount is 10%
*Group discount is 10%

Target Group

This course is of interest for all managers and professionals involved in distressed debt management. The material we cover is relevant for risk managers within banks, and also for investors, their advisors and loan servicers. The content should be equally of interest for turnaround professionals, business process engineers, auditors, consultants and other professionals involved in collections and debt restructuring.

Methodology

Lecture, discussion, individual and group exercises, case studies and reading materials

Course Outline

Unit 1 - Fundamentals of NPL Management

The Scope of NPL Management

  • What to expect in the NPL space as the COVID-19 recession plays out
  • Positioning NPL management within the credit and operational risk universe
  • Exploration of fundamental perspectives on NPL management for large corporate borrowers as well as mass-market consumer, and small business borrowers
  • The scope of NPL management: arrears management, legal enforcement, workout, coordination in a creditor committee, and loan sales to distressed debt investors

Designing the NPL Strategy

  • Credit recovery versus work out-strategy

Regulatory Guidance in NPL-Management

  • Discussion of ECB guidance to banks on NPL management
  • Treatment of non-performing loans and expected credit losses
  • How regulation and bank supervision have responded to the COVID-19 recession; scenarios for the lifting of payment moratoria and other support

Unit 2: Arrears Management in Retail and Small Business Portfolios

  • Arrears based portfolio metrics: Vintage analysis, transition matrix (roll-rates), transitory arrears, LGD tracking, conditional LGD rates and collections scoring.

  • IFRS 9 Empirical Expected Credit Loss Reserves

Unit 3: Corporate Bankruptcies / Collateral / Restructuring

  • Illustration of legal basis for court-supervised bankruptcy and restructuring
  • Covering key legal constructs: Events of default, default definitions, the rank hierarchy, netting and offsets, separation and attachment of assets, link between NPL and debt forbearance, debtor in possession financing, subordination of shareholder loans, claw-backs from owners and managers, executing on personal sureties, role of CDS
  • Specific aspect: COVInsAG ("Suspension of the insolvency request") - discussion of a practical case study ("insolvency proceeding under protective shield")

Unit 4: Legal Collections in Retail and Small Business Portfolios

  • Dealing with mandated payment holidays and forbearance
  • Tracking redefault rates, managing, incentivizing in house legal collections versus collections agencies
  • Responsible collections practices, the role of credit bureau and credit reporting agencies
  • Special case study - how to value a distressed consumer / small business portfolio

Unit 5 - Loan Sales and Securitisation

  • The distressed loans market in Europe
  • Trade-offs between internal workout and loan sales
  • The key stages in the distressed asset transfer: loan data quality and investor due diligence
  • Engaging with investors and loan servicers; managing reputational risks
  • Options in the expanding NPL securitisations market

Trainers

Dr. Joachim Bald

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Dr. Bald is Frankfurt School’s most senior international advisor and a recognized expert in Treasury, Risk and Asset Liability Management. He serves as lead consultant at the Frankfurt School Competence Center in Risk Management and regularly manages complex implementation assignments in Europe, Asia and Africa.Joachim maintains a large portfolio of advisory mandates including recent and ongoing interventions with EIB, EBRD, KfW, African Development Bank, as well as at Cairo Amman, Etihad and Ahli Bank in Jordan, HKL and PRASAC in Cambodia, XacBank and Khan Bank in Mongolia and many more. 

Dr. Bald is a Member of the Board of Directors at Bai Tushum Bank in Kyrgyzstan, at KMF in Kazakhstan and at FIDEF / EFA-Group in Singapore.   At Frankfurt School, Joachim is the Academic Director of the Certified Expert in Risk Management and also teaches Asset Liability Management in the Certified Expert in Treasury and Markets (CETM) program in partnership with AEFMA. More

After the successful completion of his MBA, Mr. Roland Kupka has been working as a trainer for the Frankfurt School of Finance & Management gGmbH with comprehensive experience for many years. His successful lectures focus on sales topics in Corporate Banking / Corporate Finance, SME Financing, and Credit Risk Analysis of credit institutions.

Besides traditional forms of debt financing, he has extensive experience particularly in the areas of Off-Balance-Sheet financing, such as leasing, factoring and asset-backed transactions (ABS), as well as Leveraged and Management Buyout financing (LBO / MBO), Project-, Mezzanine-, Syndicated-, Capital Market- and Acquisition financing.

In addition, Mr. Kupka has extensive expertise and know-how in Credit Risk Analysis, management of non-performing loans (NPL) and also a profound knowledge of SME restructuring.

After working as a credit analyst and relationship manager for more than 20 years, Mr. Kupka is a senior executive in sales and credit risk management. For many years he has worked in the public and private banking sector; Ten years of which in an international environment for a major Scandinavian bank, where, as a member of the extended management, he was responsible for business activities in Germany under income and risk aspects. Furthermore, he successfully coordinated and extended the reach of the bank's international network in Scandinavia, the UK, and Asia.

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Mr. Kupka has particular knowledge regarding the acquisition of and holistic cooperation with medium-sized corporate clients as well as their owner families. Extensive and versatile knowledge in the successful management of sales teams, personnel management in change management situations, credit portfolio management, as well as project management complete his profile.

Mr. Roland Kupka

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Dr. Alexander Lehmann

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Dr. Alexander Lehmann is a non-resident fellow at Bruegel, Europe’s top-rated economic policy think tank, and an advisor to a number of central banks and the Asian Development Bank. He has regularly lectured in executive and graduate courses, most recently as adjunct professor at the Berlin-based Hertie School of Governance, and currently at the Frankfurt School of Finance. In his advisory, research and teaching roles he focuses on how financial systems can become more resilient, recover from crises and support sustainable growth.

Until 2016 Alex was the Lead Economist at the European Bank for Reconstruction and Development (EBRD) where he headed the strategy and economics unit for central Europe and Baltic countries. From the Bank’s regional office in Warsaw he coordinated policy dialogue with governments and central banks in the region.

Previously, he was an official at the International Monetary Fund in Washington, a consultant for the World Trade Organization and the central bank of Mexico, and worked in research and teaching positions at the Royal Institute of International Affairs (Chatham House) and the London School of Economics. He has published widely on financial policies in the Euro area and emerging markets and holds a graduate degree in economics from the London School of Economics and a doctorate degree from Oxford University.