Organization of the Internal Debt Management Function
Organization of the Internal Debt Management Function
What’s on your mind?
- 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
Your questions
- 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?
Connect with us
- Find office locations kpmg.findOfficeLocations
- Email us kpmg.emailUs
- Social media @KPMG kpmg.socialMedia
