The paper proposed frameworks and strategies for developing NPL markets at national and regional levels in the Asia Pacific region, with a view to strengthening financial resilience and promoting financial development. The significance of a large and sustained buildup of NPLs was underlined as an increase in distressed assets can raise the possibility of a banking crisis and subsequently evolve into a nation-wide financial crisis. Drawing from Asian country case study experiences, the paper suggested forward-looking policy strategies for resolution mechanisms based on market and policy perspectives, emphasizing the role of centralized public asset management companies, the creation of an enabling legal environment, and the importance of solid financial market infrastructure.