Traditional and Perspective Methods of Corporate Non-Performing Loans Rejustment (Liquidation)

Abstract

Article covers issues of banks’ corporate non-performing and overdue loans management (liquidation). Authors make revision of methods that banks usually use for current goal solution and develop concepts of approaches to non-performing loans management that could become out the perspective alternative for traditional methods. Scientific novelty of the manuscript is in developing the methods (modifications of methods) of bank corporate nonperforming loans rejustment (liquidation). The principle of the first method is in changing conditions of corporate debt repayment - the new conditions must be determined by financial possibilities of the borrower. The main idea of the second one is in non-performing or overdue debt sell on the quasiequivalent terms. At that article set the modification of the second method, based on the idea of the expansion of the list of types of securities used for nonperforming loans exchange deals and provides with the substantiation of the author's position. In addition, the manuscript presents algorithms of mentioned perspective methods implementation. Article is based on the studies of leading Russian economists in the field of national economic system growth, banking, corporate non-performing loans management.

Keywords

• bank
• creditor
• non-performing loans
• overdue loans
• borrower
• rent method
• sell of debt on quasiequivalent terms