ADB-ECB Workshop on NPL Resolution in Asia and Europe

10 February 2020 to 11 February 2020

Manila

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 Feb 2020
11 Feb 2020

Date	Session / Activity	Presentation Material	Speaker(s)
10 Feb 2020	Opening Session	Welcome Remarks	Cyn-Young Park
10 Feb 2020	Opening Session	Opening Remarks	Maciej Grodzicki
10 Feb 2020	Keynote Presentation	Nonperforming Loans in Asia: Issues and Challenges The presentation highlightedthe key issues and challenges in tackling non-performing loans (NPLs) in Asia. One of the key issues is that there are feedback...	Bambang Susantono
10 Feb 2020	Session 1: Policy Strategies for NPL Resolution and NPL Market Development	The Resolution of NPLs in the Euro Area The paper outlinedthe extent and examinedthe factors underlying the NPL problem in the euro area. Over a decade after the global financial crisis, a large...	Maciej Grodzicki, Reiner Martin
10 Feb 2020	Session 1: Policy Strategies for NPL Resolution and NPL Market Development	Strategies for Developing Asia’s NPL Markets and Resolution Mechanisms The paper proposedframeworks and strategies for developing NPL markets at national and regional levels in the Asia Pacific region, with a view to strengthening...	Daekeun Park
10 Feb 2020	Session 2: NPL Resolution Mechanisms and Their Effectiveness	Overstating Moral Hazard: Lessons from Two Decades of Banking Crises This paper surveyedapproaches to the resolution of nonperforming loans in the context of major banking crises over the past two decades. It alsoexploredparticular...	Douglas Arner
10 Feb 2020	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 elevated...	Daekeun Park
10 Feb 2020	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 management...	Chuchi Fonacier
10 Feb 2020	Policy Panel: Financial Stability, Resilience, and NPL Resolution	NPL Strategy: The Case of Thailand The presentation elaboratedon initiativessuch as multiple-creditor out-of-court workout schemes and public AMCs, taken by Thailand to resolve the debts...	Tharith Panpiemras
10 Feb 2020	Policy Panel: Financial Stability, Resilience, and NPL Resolution	ECB's Contribution to Resolution of NPLs in the Euro Area This presentation illustratedECB’s contribution to NPL resolution in the Euro area. Key among these was the implementation of the Single Supervisory Mechanism...	Maciej Grodzicki
10 Feb 2020	Policy Panel: Financial Stability, Resilience, and NPL Resolution	NPLs in Mongolia and the Policy Implications The speaker providedan overview of Mongolia’s experiencewith nonperforming loans and the interventions of development partners. The measures taken under...	Emma Xiaoqin Fan

Date	Session / Activity	Presentation Material	Speaker(s)
11 Feb 2020	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 estimatedthe impact of NPLs on bank lending and macroeconomic conditions in twelve euro area countries using a panel Bayesian VAR model. Among...	Reiner Martin
11 Feb 2020	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 featuredEuropean country case studies and drewpossible policy lessons for Asia regarding NPL resolution and NPL market development, with a ...	Alexander Lehmann
11 Feb 2020	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 analyzedthe determinants, macrofinancial feedback effects, and implications ...	Peter Rosenkranz, Junkyu Lee
11 Feb 2020	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 featuredcase studies of NPL reduction frameworks and policies implemented by ASEAN+3 countries during and after the Asian financial crisis. ...	Junkyu Lee