The NPL strategy specifies how to deal with existing and future NPLs in the long, medium and short term. Ultimately, it is about cost-effectively reducing non-performing assets through sale, write-off, internalization or securitization. We support you, for example, with:

• Assessment of the operating environment and external conditions.

• Development of the NPE strategy over short, medium and long term time horizons.

• Support in the implementation of the operational plan.

• Anchoring the NPE strategy in management processes.

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The operative treatment of NPLs requires special knowledge and techniques as well as individual and financing-specific approaches. We support you, for example, with:

• Control and decision making (monitoring of strategy implementation, goal definition, monitoring).

• Definition and implementation of the operational NPL model (workout units).

• Definition and implementation of the control framework (lines of defenses).

• Monitoring of the workout units.

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NPLs have a special regulatory status because they pose a threat to macroeconomic stability and burden the P&L of financial institutions. They are therefore subject to special treatment and extensive reporting obligations. We support you, for example, with:

• Development and implementation of an NPL manual in accordance with EBA rules.

• Structure, implementation and calculation of the prudential provisioning / backstop.

• Fulfillment of extensive FinRep reporting requirements and disclosures.

NPLs are generally treated as credit-impaired in the balance sheet, and risk provisions are subject to special requirements. We support you, for example, with:

• Development and implementation of an impairment process for NPL (determination of cash flows, scenario calculation)

• Linking regulatory and accounting requirements and strategies (expected loss, value adjustment comparison).

• Creation of notes information (movement balance).