1. Non-performing loans (NPLs): refers to loans in which the borrower fails to repay the loan principal and interest on time after a certain period of time.
2. Bad debt: refers to the loan that the borrower cannot repay or recover for a long time and has been identified as irrecoverable loss.
3. Subprime loan: refers to the loan that the borrower fails to repay or defaults due to problems in repayment ability, but still has certain repayment potential.
4. Suspicious loan: refers to a loan in which the borrower's repayment ability is seriously damaged, the risk of overdue or default is extremely high, and the principal and interest may not be fully recovered.
5. Default loan: refers to the loan that the borrower repays the principal and interest of the loan overdue and is not classified as a non-performing loan, but there are risks.
Ways to deal with non-performing assets
1. Subcontract collection: entrust the collection of non-performing assets to a professional collection agency or law firm to improve the collection efficiency and recovery rate.
2. Asset transfer: selling non-performing assets to asset management companies, custody institutions or other investors to transfer risks and obtain partial recovery.
3. Debt restructuring: Negotiate with the borrower, rearrange the debt repayment plan, adjust the interest rate, and extend the repayment period, so that the borrower can repay on time.
4. Disposal and realization: realize the realization of non-performing assets through auction, debt disposal and asset leasing. In order to recover the funds as soon as possible.
5. Collateral: By disposing of the mortgaged property and non-performing assets, offset part or all of the debts and reduce the loss of non-performing assets.
6. Participation in reorganization/bankruptcy: When the borrower goes bankrupt or carries out debt reorganization procedures, participate in the formulation and implementation of the reorganization plan as a creditor, and strive to recover the creditor's rights to the maximum extent.
7. Risk transfer and sharing: reduce the risk of non-performing assets of a single institution through risk transfer and sharing cooperation with other financial institutions and insurance companies.