COURSE NAME:Managing and controlling the non-performing loans


This course can be scheduled at your convenience, to request this course please click here


During this course, participants will acquire the necessary skills to manage problem loans. These skills include identifying the signs of problem loans, rescheduling and monitoring problem loans, and using various methods to resolve problem loans.



  • Define non-performing loans and the causes.
  • Identify the indicators of non-performing loans.
  • Explain the banking treatment of non-performing loans.
  • Explain the banking treatment of non-performing investment projects.
  • Monitor rescheduled non-performing loans.
  • Manage non-performing loans.
  • Explain the principles of borrower credit ratings and provisioning.
  • Identify the lessons learned from classified/non-performing loans.
  • Describe the legal aspects of working with non-performing loans.

Module 1:  Introduction to Non-performing loans

  • Introduction to the elements of credit
    • Element of uncertainty
    • Element of confidence
    • Element of time

    • Definition of non-performing loans
      • Non-performing projects
      • Non-performing borrowers

      • Causes of non-performing loans
        • Inappropriate financing tranches and/or credit facilities
        • Inadequate credit analysis
        • Defective loan monitoring
        • Disbursement problems

        • Lender causes
        • Borrower causes
        • Environmental causes


Module 2:  The Indicators of the Non-performing Loan

  • The four stages of the non-performing loan
    • Short-term liquidity problem
    • Long-term liquidity problem
    • Deteriorating financial structure
    • Complete failure

    • The indicators of non-performing loans in the financial statements
      • Income statement
      • Balance sheet
      • Financial ratios and indicators

      • Indicators of problem loans generated internally by clients’ accounts in banks
        • Borrower account movements
        • Analysis of the borrower’s goods and / or services
        • Analysis of the borrower’s guarantees
        • Analysis of unforeseen guarantees related to clients

        • Problem loan indicators generated from client information and field visits
        • The usage of the Eltman predictor


Module 3:  The Banking Treatment of Non-performing Loans

  • Strategies for dealing with non-performing loans
    • Liquidation
    • Settlement

    • Various scenarios for modifying the status of borrowers in default
      • Rescheduling the debt
      • Financial injection    
      • Equity participation
      • Settlement through reducing bank profitability


Module 4:  The Banking Treatment of Non-Performing Investment Projects

  • The treatment of failing projects due to the lack of a sound feasibility study
    • The cash injection method
    • Transitioning part of the frozen loans to equity participation
    • Recovering the non-performing loan by marketing the goods and services of the borrower in default


Module 5:  Monitoring Rescheduled Non-performing Loans

  • The importance of grading and sequencing when rescheduling non-performing loans
  • Rescheduling non-performing loan repayments
  • On-site monitoring


Module 6:  Managing Non-Performing Loans

  • Introduction to the management of non-performing loans
  • The functions and responsibilities of problem loan management
  • Procedures for transferring the borrower from performing loans to non performing loans


Module 7:  The Principles of Borrower Credit Ratings and Provisioning

  • Management of credit risk and borrower credit risk ratings
    • Credit risk management
    • The explanation of the Obligor Risk Rate (ORR)
    • Credit ratings and loan loss provisions   
    • The accounting treatment of irregular loan repayments
    • The rules for determining the fair market value of pledged mortgage collateral
    • The general rules for provisioning

    • Management of credit risk and the classification of consumer and residential mortgage loans


  • Credit risk management
  • Credit ratings, provisioning and the status of real estate
  • The accounting treatment of irregular returns and the general rules for provisioning

  • Credit risk management and the classification of small loans
    • Introduction
    • Credit risk management
    • Credit ratings and provisioning
    • The accounting treatment of loan repayments
    • General rules for provisioning


Module 8:  Lessons Learned from Classified Loans

  • The necessity of a credit policy approved by the board of directors
  • The necessity of a standardized credit information system
  •  The necessity of sound risk assessment
  • The necessity of regular document review and field loan monitoring
  • The importance of credit quality standards and sound credit analysis
  • Emphasis on collateral
  • The importance of resolving non-performing loans


Module 9:  Legal Aspects of Working with Non-performing Loans

  • The legal status of the borrower in default
  • Status of the defaulted borrower’s collateral
  • This course is intended for employees in project finance, lending and credit administration in banks and other financial institutions and internal audit staff.
  • Credit officers
  • Credit Risk Officers .
  • Credit Risk Seniors .
  • Accountants.
  • Financial analysis .
  • Auditors .
  • Operations supervisors.
  • Trade Finance officers .
  • The banking sector staff from modern and medium levels of expertise in credit facilities with various divisions: individuals facilities, corporate facilities, SMEs facilities,  and banking circles risk, credit operations and services, and treasury departments, and sales departments.
    • 5 Day(s)

    The presentation is generally appealing to me. The dedication & devotion of the instructor are both laudable & admirable.
    Mohammed F. Alotaibi

    Really this course is important for any inspector, so I will recommended it for our employees. And thanks a lot!
    Ahmed Al-Yami

    You are doing excellent bringing such very talented instructor. Please keep it up.
    Ahmed Afifi
    Al-Zamil CoolCare

    I would like to appreciate you as well as the instructor for a good training due to the fact that the helping to gain new information about the types of valve with advantages and disadvantage as well. Many thinking.
    Zaki Ali Aldawood

    This course was very beneficial and helpful to understand one of the Major NDT method. I encourage ITC to continue with this performance.
    Talal Saad AlHasawi

    ITC service was in overall excellent. Thanks.
    Wael M. Morsy

    This course was good and a nice guide to the PMP exam. Thanks.
    Yazeed Mohamed Mreki
    General Authority of Civil Aviation (GACA)

    It was good course & good preparation with excellent instructor. Thanks a lot.
    Faisal Mahdi Al-Qahtani

    It was a nice course to have. I suggest taking this course with the same instructor to other people. Thanks for the instructor for his kindness & helfull during the course.
    Abdul-Moniem Al-Humoud

    It is very important course, which enable us to improve our knowledge to work approaching our big account and can be recall us the key account. This is will support us to active result for the best of the Co.
    Mohammed Amjad
    Al-Suwadi Services

    The instructor is highly and technical knowledgeable in explaining all the subject in the course taken.
    Noel V. Garan
    Coldstorec Group Of Saudi Arabia

    Instructor was well prepared and knowledgeable I gain lot of useful information.
    Gulam Khan
    Saudi Aramco

    It was a good learning experience. Got to know the concept involved in key account.
    Muthuraman Nachiappan
    Al-Suwadi Services

    The instructor Mr. Ahmed Sabry has a very nice spirit.
    Salam Fakhoury
    Al Khodari Company

    It is very useful to us and increase our knowledge.
    Mohammed Rashed Afifi
    Al Khodari Company

    The course is excellent and helpful. It help me in organizing the work in more safe manner.
    Muzammil Hayat
    Al Khodari Company

    The instructor is very knowledge and hard working, his way of teaching is very good.
    Ibrahim Darwish
    Al Khodari Company