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Non-Performing Loans (NPL) Management


The course is split up into 4 online interactive training sessions each 3.5 hours. For detailed content refer Course Outline.

Date : 1st – 4th February, 2021
Time : 13:00 – 16:30 CET

Price per participant : 1,400 EUR *

*Alumni discount is 10%
*Group discount is 10%

Target Group

This course is of interest for managers and financial professionals in a broad range of industries, including banks, non-bank lenders, insurance providers, telecoms, commerce, manufacturing and health care. The content is particularly relevant for risk analysts, business process engineers, software developers, auditors, consultants and other professionals interested in getting their money back.

Learning Target

Senior managers will learn to categorize and prioritize digital marketing activities. We will discuss answers to the following important questions:

  • Which digital marketing options exist in the market?
  • What are their advantages and disadvantages?
  • How should I prioritize, given the goals/industry/business model/size of my company?
  • How can I measure the effectiveness of digital marketing activities?
  • How do I spend my marketing/sales budget wisely and avoid wasting money in digital marketing?

This course will not make you a digital marketing expert – but it will help you become an effective digital marketing manager.


Lecture, discussion, individual and group exercises, case studies and reading materials

Course Outline

Unit 1 - Fundamentals of NPL Management

The Scope of NPL Management

  • Positioning NPL Management within the credit and operational risk universe
  • Exploration of fundamental perspectives on NPL Management for Large corporate borrowers as well as Mass-market consumer, microfinance and small business borrowers
  • Learning the full scope of NPL management ranging from legal action in a creditor committee and distressed debt investors, bad banks to arrears management statistics and behavioral collections.

Regulatory Guidance on NPL-Management

  • Discussion of BCBS, ECB, EBA and other relevant examples of banking sector guidance in general and specifically under the circumstances of the COVID-19 recession
  • Highlighting the relevance of best practices also for non-banks and any business in general that runs a receivables book

Organizational dimension of NPL Management

  • ​​​​​​​Form the basis for decisions "credit recovery versus work out-strategy"

Unit 2: Arrears Management in Retail and Small Business Portfolios

  • Arrears based portfolio metrics: Vintage analysis, transition matrix (roll-rates), transitory arrears, LGD tracking, conditional LGD rates and collections scoring.

  • IFRS 9 Empirical Expected Credit Loss Reserves

Unit 3: Corporate Bankruptcies / Collateral / Restructuring

  • (Beyond) The Customer Journey Hype
  • Optimizing Digital Marketing Activities
  • Case Study: How to Set Up and Interpret A/B-Tests

Unit 4: Legal Collections in Retail and Small Business Portfolios

  • Dealing with mandated payment holidays and forbearance

  • Tracking redefault rates, managing, incentivizing in house legal collections versus collections agencies

  • Responsible collections practices, the role of credit bureau and credit reporting agencies

  • Special case study - how to value a distressed consumer / small business portfolio


Dr. Joachim Bald

Dr. Bald is Frankfurt School’s most senior international advisor and a recognized expert in Treasury, Risk and Asset Liability Management. He serves as lead consultant at the Frankfurt School Competence Center in Risk Management and regularly manages complex implementation assignments in Europe, Asia and Africa.Joachim maintains a large portfolio of advisory mandates including recent and ongoing interventions with EIB, EBRD, KfW, African Development Bank, as well as at Cairo Amman, Etihad and Ahli Bank in Jordan, HKL and PRASAC in Cambodia, XacBank and Khan Bank in Mongolia and many more. More