TARGET GROUP | Staff from central banks, finance ministries and other public institutions involved in the management and resolution of Non-Performing Loans (NPLs) and / or the design of related policies.
DESCRIPTION | High levels of Non-Performing Loans (NPLs) can be a major vulnerability for economies, banks and financial stability following crisis episodes, underpinning the need for effective NPL management and resolution strategies. In addition to their impact on the ability of banks to extend credit to the real economy, which may have a downward impact on growth, the policy choices made in the context of NPL management and resolution can have a major impact not only on banks, but also on borrowers and public finances.
This one-week course, jointly organized by the Joint Vienna Institute, the World Bank and the European Central Bank, provides an encompassing overview of the NPL situation in CESEE, Caucasus and Central Asian countries as well as in the EU. The course focuses on NPL resolution following the Great Financial Crisis and more recent credit risk developments that call for supervisory vigilance. The course puts special emphasis on the framework conditions needed for successful NPL resolution and provides international experience and discusses best practice on various on- and off-balance sheet approaches that are available to manage this problem. Finally, the course looks at country-specific experiences in dealing with high NPL levels.