Strategies for Developing Asia’s NPL Markets and Resolution Mechanisms

Event: ADB-ECB Workshop on NPL Resolution in Asia and Europe

Strategies for Developing Asia’s NPL Markets and Resolution Mechanisms

10 February 2020

Author / Speaker:

Daekeun Park, Hanyang University - Other materials by the author

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.

Geographical Focus:

Regional - Asia

Type of Content:

Learning Event

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.