Problem Loan Management

A Framework for Managing, Mitigating
& Resolving Non-Performing Loans

15 - 18 February 2022 Sandton Centre, Johannesburg South Africa

Register Now! Limited Seats Available!

Public R15, 999.00

Online R9, 999.00

Online R9, 999.00

Course overview:

An organization’s ability to prevent problem loans begins with sound lending policies and credit underwriting. However, even good loans can become problem loans and result in a loss to the organization. In the Minimizing and Managing Problem Loans course, participants learn best practices in loan monitoring and maintenance, identifying red flags, and implementing effective strategies to manage problem loans and minimize losses.

This intensive three-day course provides a rigorous and comprehensive framework for managing problem loans, from a strategic and operational prospective. It will provide participants with a sound approach and methodology for identifying, assessing and managing problem loans from origination to resolution.

COURSE OBJECTIVE:

  • Provide analytical bases for early identification of problem loans, and how to minimize cost of bad loans.
  • Learn how to manage collaterals relating to problem loans.
  • Use a common model for identifying and working with problem loans, ensuring that all appropriate steps are taken on a timely basis
  • Communicate with their managers to determine the most appropriate actions to minimize risks before proposing solutions to clients
  • Communicate loan issues to clients in a timely fashion to achieve buy-in and faster resolution
  • Schedule timely follow-up activities to ensure that agreements are kept, and appropriately escalate problem loans to the appropriate department if risk management efforts have been unsuccessful
  • Causes of Problem Loans and Early Detection

Who Should Attend:

The course has been designed for professionals responsible for detecting, assessing, monitoring, managing and resolving problem loans, as well as professionals with portfolio management responsibilities. Professionals within departments such as Credit Risk Management, Credit Policies and Procedures, Risk Assessment, Credit Approval, Credit Administration/Monitoring and Collections, as well as mid-level managers of the Retail, SME and Corporate Business Units would benefit from this training program. Junior and mid-level credit officers and relationship managers would also benefit.

  • Corporate Managers
  • Credit Analysts
  • Credit Risk Officers and Managers
  • Operations Staff · Loan and Credit Management Officers
  • Relationship Managers
  • Debt Collection / Recovery officers
  • Branch Staff

COURSE OUTLINE:

DEFINING PROBLEM LOANS AND ASSESSING THEIR COST ON INSTITUTION’S SOUNDNESS AND REPUTATION

  •  Costs of Problem Loans
  •  Problem Loans and Their Impact on an Institution’s Operations, Soundness and Reputation
  • Defining Characteristics of Problem Loans
  • How Banks Get into Trouble
  • Objectives of Problem Loan Management
  • Preventing Problem Loans

CAUSES OF PROBLEM LOANS AND EARLY DETECTION

  • Major Causes of Problem Loans
  • Profiles of Problem Companies
  • Early Detection
  • Early Warning Signs
  • Information Needs and Information Gathering
  • The Role and Importance of the Interview and Monitoring Process

ANALYZING AND SOLVING THE PROBLEM LOAN

  • Analyzing the Problem (Big Picture)
  • Analysis of (Management, Financials and Strategy)
  • Solving the Problem
  • Situation Analysis

DEVELOPING THE PLAN TO IMPROVE THE BANK’S POSITION

  • Preliminary Considerations
  • Stages or Steps (Typical/Possible) to Payout
  • Anticipating the Possible Stages to Payout
  • Discounting as an appropriate alternative
  • Preparing a Wish List
  • Assessing Your Strengths and Weaknesses

FUNDAMENTALS OF LOAN RESTRUCTURING

  • Fundamental Concepts of Loan Structuring and Restructuring
  • Purpose of the Workout
  • Liquidating Collateral
  • Reviewing Collateral and Ensuring Perfection
  • Fundamentals of Bankruptcy
  • Resolving and/or Restructuring Problem Loans
  • Negotiating a Loan Restructuring

ADMINISTERING PROBLEM LOANS AND POLICIES AND PROCEDURES

  • Preventing Problem Loans (Four Ps of Prevention)
  • Strengthening Credit Administration
  • Preventing Problem Loans
  • Prioritizing Tasks Involved in Managing a Problem Loan Portfolio
  • Considerations when Developing a Workout Department
  • Good Bank vs. Bad Bank Case Study

End of the Workshop

IN HOUSE AND ONLINE TRAINING

While both In-House and Online training can present with cost-effectiveness and time-efficacy, there are some very specific differences between in-house courses and those based online.
The demand for additional courses by individuals or groups of people is increasing. Still, it depends entirely on the preferences of a person what type of training he or she wants to receive. Online courses and in-house training carry some similarities but they are considered to exhibit some very pivotal differences too. Despite that, both types of learning can be really beneficial for attendees.

For Registration and other Training arrangements,
contact us on the detail below.
SOUTH AFRICA Tel: +27 11 057 6001
KENYA Tel: +254 11 353 1082
WhatsApp +27 79 574 0389
info@bmktraining.co.za / www.bmktraining.com