Non-Performing Loans (NPL) Management Training

The programme

Programme overview

Managing NPLs takes more than a phone call or a letter. It demands strategy, analysis, timing, and collaboration. In today’s environment, lenders must sustain high repayment rates while navigating economic uncertainty, borrower stress, and complex portfolios—standard recovery tactics are no longer enough.

This Non-Performing Loans (NPL) Management practical programme equips you to tackle NPLs with structure and confidence. You’ll learn to spot early warning indicators, diagnose root causes of default, and tailor recovery strategies by borrower type and risk profile. Whether you operate in retail banking, SME lending, microfinance, or development finance, you’ll leave with clear processes, working templates, and a sharper recovery mindset.

Learning is hands-on and scenario-based, built around real cases, role-plays, and live exercises. You’ll practise leading recovery conversations, restructuring troubled loans, and tracking portfolio performance with precision.

Who should attend

Who is this programme for?

• Credit Officers
• Collections & Recoveries Teams
• Branch Managers
• Risk Analysts
• NPL/Workout Officers (Banks, MFIs, DFIs)
• Internal Auditors
• Central Bank / Regulatory Staff
• Legal Counsel
• Compliance Officers
• Consultants (Credit & NPL)
• Loan Monitoring, Restructuring & Collections Staff

Learning outcomes

What you will learn

• Identify early warning signs before loans go bad, including how AI-driven predictive models now identify at-risk loans months before traditional warning signs appear
• Diagnose the root causes of non-payment
• Segment NPLs by risk level and recovery potential
• Design realistic, borrower-specific recovery plans
• Apply legal and non-legal enforcement options appropriately
• Restructure loans based on viability and cash-flow evidence
• Strengthen collaboration between credit and recovery teams
• Track and report NPL metrics clearly and consistently

Explore the programme

Detailed programme outline

• What qualifies as an NPL: definitions and thresholds
• Types of delinquency and severity levels
• Institutional policies vs regulatory requirements
• Why NPLs matter: financial and reputational impacts
• Global trends and regional case comparisons
• Financial signs: arrears, income drops, bounced debits
• Behavioural red flags: silence, disputes, stalling
• Building internal early-warning systems, including AI-driven predictive models that identify at-risk loans months before traditional warning signs appear — one major European institution documented a 30% decrease in new NPLs after implementing AI-based early warning systems
• Tracking sector trends to forecast stress
• Borrower-engagement scripts for early intervention
• Business vs personal borrowers: distinct drivers
• External vs internal causes: market shifts, management gaps
• Common sector patterns (agriculture, retail, construction)
• Site visits and borrower interviews to validate findings
• Mapping root causes across your portfolio
• Designing a risk-based NPL classification system
• Segmenting by history, exposure, collateral status
• Prioritising by recovery potential and time sensitivity
• Matching cases to the right recovery staff
• Organising workloads for maximum efficiency
• Strategy vs tactics: choosing the right path per case
• Negotiating payment plans and partial settlements
• When to offer grace periods or restructure
• Managing difficult conversations professionally
• Setting internal targets and KPIs for recovery
• Eligibility criteria and decision gates
• Assessing viability with cash-flow projections
• Adjusting terms: rate, tenor, security, schedules
• Documentation and post-restructure monitoring
• Avoiding evergreening and restructuring abuse
• When legal action makes sense—and when it doesn't
• Overview of legal recovery pathways in-context
• Costs, timelines, and success probabilities
• Managing third-party recovery agents
• Integrating legal steps into a broader recovery plan
• Clear roles between credit officers and recovery staff
• Joint portfolio reviews and action planning
• Trust-building and communication routines
• Handover tracking and accountability
• Incentives that reward collective recovery success
• Building dashboards for NPL trends and risks, including AI-driven analytics now used by European banks to achieve 15-25% improvements in recovery rates while reducing time spent on low-value activities by up to 40%
• Ageing analysis and risk-migration tracking
• Board and regulatory reporting standards
• Segment-level insights to inform credit policy
• Embedding NPL management into credit review cycles
• What NPLs reveal about origination and underwriting
• Linking lending practices to long-term performance
• Training frontline staff to spot early risk
• Closing the loop between field officers and analysts
• Shared ownership of loan quality across functions
• Early-warning indicator checklist
• Root-cause analysis template
• NPL segmentation & priority matrix
• Borrower engagement & negotiation scripts
• Restructuring decision tree and cash-flow worksheet
• Recovery action plan and tracker
• Portfolio dashboard starter pack (metrics & definitions)

Learning approach

How you will learn

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.– Course Material: Access well-crafted supporting resources.– Group Work: Collaborate on discussions and case studies for practical insights.– Workshops & Role-Play: Participate in immersive, scenario-based activities.– Practical Application: Focus on applying theoretical knowledge in real situations.– Post-Training Support: Receive extensive support after training for skill implementation.

Discuss your requirements

Dates, duration & arrangements

Contact Ratomac to confirm dates, duration, delivery format, entry requirements and any applicable assessment or certification before booking.