Problem Loan Management Training for the Egyptian Banking Institute

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

This intensive three-day course provided EBI clients with a rigorous and comprehensive framework for managing problem loans, from a strategic and operational prospective.

GBRW is a regular provider of training services to the Egyptian Banking Institute (EBI). In addition to courses including Customer Relationship in SME Banking; Treasury Operations; and SME Credit Analysis. GBRW was also asked to design and deliver a course on Problem Loan Management.

The program provided 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 also explored the root causes, both internal and external which contribute to problem loans. The programme addressed the implementation of an effective early warning system, as well as the benefit of scenario planning and stress testing. In addition, the programme covered 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.