The borrower only recognizes that it is a distressed company late in the day
The system of early warning signals that a borrower might become a distressed company is ineffective
The strategy for work with borrowers does not include a restructuring stage: the borrower is either considered a standard borrower or is immediately classified within the debt recovery pile
The functionality of the debt management division is confined to legal procedures, while the out-of-court settlement procedure is not applied extensively
There is no methodology for assessing the financial position of „distressed borrowers“ and constructing a respective cash flow forecast. Meanwhile it transpires that the assessment methodology applied to standard borrowers is unsound
The process for work with restructured loans during restructuring and after the recovery of solvency is set up ineffectively
The KPI system of the debt management division is ineffective
How do you set up the early monitoring system to promptly identify potential non-performing loans and facilitate the proactive adoption of measures aimed at the strengthening of the bank’s position, the recovery of debt or restructuring?
Why are the regular client risk assessment division and business unit ineffective in their work with borrowers that find themselves in dire financial straits?
How do you avoid starting the debt recovery procedure too late or too early?
How do you enhance the effectiveness of work with bad debt?
How do you avoid duplicating the functionality of the debt management division with other divisions of the bank?