Avoiding Problem Loans Through Active Loan Management (104)

Programme Benefits
- Focusing on key issues in preventing problem loans
- Uncover the key stages of financial distress
- Learn the important principles of loan management
- Avoid serious loan losses - learn to detect signs of impending problem loans
- Utilise statistical models to predict corporate distress and evaluate its effectiveness
- Reduce losses by adopting appropriate immediate action drills in response to problem loans
- Further eliminate potential losses by implementing secondary controls
- Identify the various loan portfolio risks
- Adopt methods to analyse loan delinquencies
- Focus on stress testing of your loan portfolio

Programme Outline
Preventing Problem Loans
- Keys to Preventing Problem Loans
- Costs of Problem Loans
- Should Your Bank Have a Special Assets Team?
- Who Should Handle the Special Assets
- Why Banks Gets into Trouble

Detecting Problem Loans
- Profile of the Troubled Company
- Early Detection
- Major Causes of Problems
- Early Warning Signs
- Credit Ratings
- Bankruptcy Predictor Model

Gathering Information
- Information Needed
- Exposure/Risk
- Financial/Management Information
- External Environment

Analyzing Problem Loans
- Analysis Framework
- Analysis of Management
- Financial Analysis
- Strategic Analysis
- Analysis of Other Factors

Dealing the Problem Loans
- Turnaround Management
- Management's Willingness to Solve the Problem
- The Transition Plan
- Turnaround Strategy
- Viable Core or Strategic Turnaround Strategy

Developing the Plan
- Anticipating the Possible Stages to Payout
- Preliminary Considerations
- When Discounting Looks Good
- Preparing the Wish List
- Relative Strengths and Weaknesses
- Keeping Your Eye on the Ball

Deciding on Workout
- Purposes of Workout
- Specific Workout Problems to Avoid
- Lending into a Workout

Liquidating the Collateral
- Reviewing Collateral and Ensuring Its Perfection
- Why Not Just Liquidate the Collateral?
- What About Other Creditors?
- Foreclosure

Portfolio Management
- Identify types of portfolio risks
- Different methods to analyse loan delinquencies in a portfolio
- Introduction to stress testing

Duration: 2 Day

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