Fundamentals of Credit Risk Management – Quiz 10

Last Updated: June 2024

Table of Contents

Topics:

Chapter 7:

Appreciate how financial institutions manage customers and loans when they experience difficulties.

– Describe the warning signs of loan delinquency.
– Explain the options available to lenders.

• Financial difficulties/types of potential problems
• Early Warning signs of deteriorating credits/loans – lessons learned
• What to do when things go wrong – dealing with problem accounts, how to communicate with the customer –positive actions
• Microfinance remedial action – the effect of delinquency, collections and recoveries, managing arrears in a crisis, disasters – impact and response
• Personal remedial action – rescheduling, recovery procedures, legal procedures
• Corporate remedial action – recovery/re-structuring
• Due-diligence and the social responsibility when undertaking recovery/re-structuring

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