Managing Exposures in Credit Risk: Non-Performing Loans 2019 | GFMI | 21 November 2019 | Prague, Czech Republic

This marcus evans conference will address how to best manage and prevent credit risk exposures issuing from non-performing loans, with a focus on the new guidelines from regulators.

Since 2008, the banking sector has seen high levels of non-performing loans across Europe. Whilst these issues have broadly dissipated within central Europe, the periphery countries, particularly in the south and east, still struggle with a systematically large percentage of NPL. The quantity of NPLs in affected countries is both an impediment to the strengthening of the European banking union, and presents one of the largest threats to the banking sectors of the affected countries. Adding to IFRS 9 from 2018, the EBA and European Commission have issued macro-prudential guidelines upon the management and provisioning of NPLs, along with incentives to effectively deal with loans that have defaulted. Understanding how to operate within the new guidelines and how to best use the incentives provided will be crucial in improving the overall performance of banks in the coming years. To avoid additional NPL build up and manage the problems already present surrounding the periphery, these guidelines must be understood and put to work actively combating the existing and possible build up of NPLs on the balance sheet.

Key Topics:
• Latest regulatory guidance around NPLs and its impact on credit risk management
• Manage exposure to drive away non performing loans through better frameworks and monitoring
• Examine the effect of stricter default definitions under IFRS 9 on NPLs and assess this within SREP
• Treat loss given default arising from non performing loans by restructuring and offloading risk