ADB-ECB Workshop on NPL Resolution in Asia and Europe 10 to 11 February 2020 Philippines Previous financial crises have demonstrated the long-lasting negative impact nonperforming loans (NPLs) can have on financial stability and the economy. While the 1997/98 Asian financial crisis was a watershed moment for many Asian economies’ financial systems, the economic impacts of elevated NPL levels persisted well beyond the crisis period. The euro area’s more recent experience also illustrates the systemic and negative impact large NPLs can have on all economies in a region. Against this background, this workshop examined the macro-financial implications of NPLs, highlighted country case studies, and discussed policy lessons for the development of NPL resolution strategies in Asia and Europe. Program and Learning Materials 10 February 2020 11 February 2020 Session / Activity Title Speaker(s) Opening Session Welcome Remarks Cyn-Young Park Opening Session Opening Remarks Maciej Grodzicki Keynote Presentation Nonperforming Loans in Asia: Issues and Challenges The presentation highlighted the key issues and challenges in tackling non-performing loans (NPLs) in Asia. One of the key issues is that there are… Bambang Susantono Session 1: Policy Strategies for NPL Resolution and NPL Market Development The Resolution of NPLs in the Euro Area The paper outlined the extent and examined the factors underlying the NPL problem in the euro area. Over a decade after the global financial crisis,… Maciej Grodzicki, Reiner Martin Session 1: Policy Strategies for NPL Resolution and NPL Market Development Strategies for Developing Asia’s NPL Markets and Resolution Mechanisms The paper proposed frameworks and strategies for developing NPL markets at national and regional levels in the Asia Pacific region, with a view to… Daekeun Park Session 2: NPL Resolution Mechanisms and Their Effectiveness Overstating Moral Hazard: Lessons from Two Decades of Banking Crises This paper surveyed approaches to the resolution of nonperforming loans in the context of major banking crises over the past two decades. It also… Douglas Arner Session 2: NPL Resolution Mechanisms and Their Effectiveness Assessing the Effectiveness of Banking Sector Nonperforming Loan Resolution Policies and Measures Previous financial crises have demonstrated the long-lasting negative impact NPLs can have on financial stability and the economy, as the effects of… Daekeun Park Policy Panel: Financial Stability, Resilience, and NPL Resolution Bank Non-Performing Loans (NPLs) Management and Resolution: The Case of the Philippines The presentation highlights the approach taken by the Bangko Sentral ng Pilipinas (BSP) to respond to NPLs in the Philippines. The bank NPL… Chuchi Fonacier Policy Panel: Financial Stability, Resilience, and NPL Resolution NPL Strategy: The Case of Thailand The presentation elaborated on initiatives such as multiple-creditor out-of-court workout schemes and public AMCs, taken by Thailand to resolve the… Tharith Panpiemras Policy Panel: Financial Stability, Resilience, and NPL Resolution ECB's Contribution to Resolution of NPLs in the Euro Area This presentation illustrated ECB’s contribution to NPL resolution in the Euro area. Key among these was the implementation of the Single Supervisory… Maciej Grodzicki Policy Panel: Financial Stability, Resilience, and NPL Resolution NPLs in Mongolia and the Policy Implications The speaker provided an overview of Mongolia’s experience with nonperforming loans and the interventions of development partners. The measures taken… Emma Xiaoqin Fan Session / Activity Title Speaker(s) Session 3: Country Cases of NPL Resolution and Macrofinancial Implications of NPLs – Europe Do Nonperforming Loans Matter for Bank Lending and the Business Cycle in Euro Area Countries? This paper estimated the impact of NPLs on bank lending and macroeconomic conditions in twelve euro area countries using a panel Bayesian VAR model… Reiner Martin Session 3: Country Cases of NPL Resolution and Macrofinancial Implications of NPLs – Europe Country Case Studies on Resolving Problem Loans in Europe: Crises, Policies and Institutions This paper featured European country case studies and drew possible policy lessons for Asia regarding NPL resolution and NPL market development, with… Session 4: Country Cases of NPL Resolution and Macrofinancial Implications of NPLs – Asia Nonperforming Loans in Asia: Determinants & Macrofinancial Linkages Asian economies have seen recent rises in nonperforming loans. This paper analyzed the determinants, macrofinancial feedback effects, and… Peter Rosenkranz, Junkyu Lee Session 4: Country Cases of NPL Resolution and Macrofinancial Implications of NPLs – Asia Country Case Studies on Resolving Problem Loans in Asia: Crises, Policies, Institutions, and Market Development This paper featured case studies of NPL reduction frameworks and policies implemented by ASEAN+3 countries during and after the Asian financial… Junkyu Lee Disclaimer The views expressed on this website are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. Event Coordinator/s Peter Rosenkranz Related Full Agenda ADB Organizer/s Economic Research and Development Impact Department Partner Organization/s European Central Bank Topics Finance Economics