3. Non-performing Loans (NPLs) Strategy
Effective from Jan 06 2020 - Jun 30 2020
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| The bank's goal in the resolution process should be to reduce non-performing assets as early as possible, in order to: | |
| i. | Free up coinage and capital for new lending; |
| ii. | Reduce the bank's losses, and return assets to earning status, if possible; |
| iii. | Generate good habits and a payment culture among borrowers; and |
| iv. | Help maintain a commercial relationship with the borrower by conducting a responsible resolution process. To ensure that the goal is met, each bank should have a comprehensive, written strategy for management of the overall NPL portfolio, supported by time-bound action plans for each significant asset class. The bank must also put in place and maintain adequate institutional arrangements for implementing the strategy. |