Effective from Jul 01 2020 - Jun 30 2020 To view other versions open the versions tab on the right
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.
