Problem Loan Management Training for major Tanzanian Bank

Credit Risk, GBRW Consulting, GBRW Group, GBRW Learning, Problem Loan Management, Risk Management

GBRW was retained by a major Tanzanian bank to deliver an intensive three-day workshop on providing a comprehensive framework for managing problem loans, from a strategic and operational prospective.

The training provided participants with a sound approach and methodology for identifying, assessing and managing problem loans from origination to resolution. Beginning with how problem loans impact an institution’s soundness and reputation, the programme explored the root causes of problem loans, the importance of effective early warning systems, as well as the benefit of scenario planning and stress testing. The programme also covered the practical options, approaches and methods for resolving both non-performing portfolios and individual loans.

It addressed the implementation of an effective early warning system, as well as the benefit of scenario planning and stress testing. The programme then covered the practical options, approaches and methods for resolving both non-performing portfolios and individual loans, illustrated with real-life case studies. By addressing the day-to-day challenges of non-performing loans, as well as extraordinary circumstances, the programme prepared and enabled the participants to develop and implement an effective plan for improving their bank’s position.

Deliverables included:

Development and delivery of a training course which gave participants:

- A fundamental understanding of how problem loans impact a lending institution’s operations;

- An understanding that defining problem loans effectively facilitates identification and resolution;

- An approach of classifying problem loan causes that facilitates the task of prioritizing mitigation strategies;

- An awareness of various strategies for resolving problem loans;

- An understanding of financial analysis approaches used assess distressed companies;

- An understanding of how negotiating fundamentals are applied to resolving problem loans; and

- An ability to contribute to their institution’s problem loan policies and procedures.