Deleveraging unsecured consumer portfolios is a simple, hassle-free process to improve your cashflow and reduce your losses from non-performing debt.
In a nut shell, debt collection starts first at a creditor’s level. Once the creditor is unable to collect the same and accounts become delinquent, a special emphasis on collection should be carried out.
The Asian market for distressed loans is young and fragmented but has huge potential to grow given the huge amount of existing and expected NPLs. The process of balance sheet optimization to conserve capital banks is a solution for banks to maintain healthy working capital ratios.
To maintain financial prudence and a sound banking system with moderate bad debt levels, financial institutions will need to figure out efficient risk management. Traditional solutions have not helped much in resolving the debt problems. Thus, is debt sale the answer to the rising loan bubble?